The Bitcoin blockchain (BTC) has recently been rocked by BRC-20-induced congestion, putting a strain on centralized exchange platforms. Faced with this situation, Binance has announced its intention to integrate the Lightning Network, a solution that could revolutionize the Bitcoin user experience.
Work is progressing rapidly at Binance to implement the Lightning Network. When demand for use of the Bitcoin blockchain spikes, centralized exchange platforms face challenges in processing withdrawals efficiently. Last May, Binance temporarily suspended withdrawals due to the BRC-20 craze that had gripped the Bitcoin network. Indeed, high transaction fees can lead to financial losses for these platforms, prompting them to take such measures.
To remedy this problem, Binance decided to explore the integration of Bitcoin’s Lightning Network. On Tuesday, the platform confirmed that development was underway, after some observers questioned the existence of certain nodes linked to Binance.
For coinbase too, Lightning Network in the future?
What will this mean for users? As layer 2 of the Bitcoin network, the Lightning Network enables low-cost, high-speed transactions. This solution is often presented as an ideal means of payment. As a result, Binance users will now be able to make BTC deposits and withdrawals on the platform using this option, enjoying the benefits of speed and low fees. This integration should reduce network congestion during periods of high usage, particularly during days of increased volatility on the crypto-market.
On the Amboss explorer dedicated to the Lightning Network, you can find a node associated with Binance, with a capacity of 30 BTC. This node is currently connected to 5 channels, 2 of which belong to Kraken.
However, Binance still has some technical work to do, and has not yet announced a precise release date for this long-awaited integration. The platform will continue to share information as the integration progresses.
Interestingly, Coinbase CEO Brian Armstrong had also announced that his platform would support the Lightning Network in the future, showing a growing trend among major players in the crypto-industry to adopt this second-layer solution for Bitcoin.