Many cryptocurrency exchanges have built up their own Lightning nodes recently to provide users with faster Bitcoin transactions.
According to a tweet from Tuesday, cryptocurrency exchange Binance today announced that it had built up Lightning nodes on the Bitcoin network in preparation for offering consumers Lightning-based Bitcoin deposit and withdrawal services in the future.
The exchange tweeted, “Binance is working to integrate the Bitcoin Lightning Network for deposits and withdrawals.” “Technical work still needs to be done, though. When Lightning is fully integrated, we’ll update.
To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and adjust accordingly if needed.
Our team has also been working on enabling BTC Lightning Network withdrawals, which will help in such situations.
— Binance (@binance) May 8, 2023
The Lightning network, which accelerates transaction processing and reduces network congestion, is referred to as a “second layer” of the Bitcoin blockchain. This is accomplished by establishing payment channels that carry out off-chain transactions between users for a few cents in fees.
Binance announced in May that it would include the Lightning network in order to simplify users’ deposit and withdrawal processes. As a result of Binance briefly pausing bitcoin withdrawals due to network congestion at the time, users began to worry about the exchange’s reserve funds.
Consumers may already access Lightning network services on the exchanges Kraken and Bitfinex, and Coinbase CEO Brian Armstrong hinted in an April tweet that the exchange would eventually make Lightning network services available to consumers.
Discussion about this post