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Faster Bitcoin Transactions Arrive as Coinbase Integrates Lightning Network

Key Takeaways

  • Coinbase integrates the Bitcoin Lightning Network, a faster, cost-effective option for transactions;
  • Transactions on the Lightning Network are nearly instant, though some transfers to self-custody wallets may encounter delays;
  • Coinbase collaborates with Lightspark to support the integration.
Faster Bitcoin Transactions Arrive as Coinbase Integrates Lightning Network

Coinbase, one of the largest crypto exchanges, has now integrated the Bitcoin Lightning Network into its services.

This integration allows users to select either the Bitcoin network or the Lightning Network, a Layer-2 solution that speeds up transactions and reduces costs.

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Using the Lightning Network, transactions are processed nearly instantly, though Coinbase notes that transfers to certain self-custody wallets may face delays or complications due to "unique implementations or fee structures."

Users engaging with this network will handle invoices—long strings of characters representing the transaction. This approach facilitates faster speeds compared to the Bitcoin network, where transactions can take anywhere from ten minutes to two hours.

A nominal processing fee of 0.1% will be charged for these transactions, marking a reduction in transaction costs.

For this integration, Coinbase selected Lightspark, a company led by former PayPal president David Marcus, as its partner. Lightspark supports the initiative by hosting the Lightning node, while Coinbase maintains control over the Lightning signing keys through a remote-key signing setup.

With many of its competitors, including Binance, already supporting the Lightning Network, Coinbase's adoption of this technology is an important development in its service offering.

This enhancement not only positions Coinbase competitively in the marketplace but also aligns with industry trends toward faster and more economical Bitcoin transactions.

However, Coinbase has recently faced less favorable news. The US Securities and Exchange Commission (SEC) has filed a lawsuit against the cryptocurrency exchange, alleging it operated without proper registration.

Aaron S. , Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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