Benzinga - Leading cryptocurrency exchange Binance (CRYPTO: BNB) has announced that it is in the process of integrating the Bitcoin (CRYPTO: BTC) Lightning Network to facilitate deposits and withdrawals.
The announcement was made via a tweet from Binance, which confirmed that some users have already noticed the establishment of new Lightning nodes.
“Some eagle-eyed users spotted our new lightning nodes recently. Yes - that's us! However, there's still more tech work to be done. We'll update once Lightning is fully integrated,” Binance stated in its tweet.
Understanding The Bitcoin Lightning Network
The Bitcoin Lightning Network is a revolutionary “second layer” protocol that operates on top of the Bitcoin blockchain.
It is specifically designed to exponentially increase the speed of transactions while simultaneously reducing network congestion.
This is accomplished by creating payment channels that conduct transactions off the Bitcoin blockchain, with only the final balances eventually being recorded on-chain.
The fees for transactions through the Lightning Network are minimal, often just a few cents.
A Response To Previous Challenges
This integration comes as a proactive response to the challenges that Binance faced earlier.
In May, Binance revealed its intentions to integrate the Lightning Network in an attempt to improve deposit and withdrawal functions for its users.
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This decision was made after the exchange temporarily halted Bitcoin withdrawals due to network congestion, which in turn raised concerns among its user base regarding the exchange’s reserve funds.
Binance Joins Ranks With Other Major Exchanges
Binance is not alone in adopting the Bitcoin Lightning Network to provide its users with an optimized experience. Other prominent exchanges such as Kraken and Bitfinex are already offering Lightning Network services to their users.
Coinbase Global Inc’s (NASDAQ: COIN) CEO, Brian Armstrong, hinted in a tweet in April that the exchange is also looking into offering Lightning Network services in the future.
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