Binance completes integration of Bitcoin Lightning Network
Quick Take
- Binance has completed the integration of the Bitcoin Lightning Network.
- The news means Binance users can now deposit and withdraw bitcoin via the Layer 2 network.
Crypto exchange Binance has completed the integration of the Bitcoin Lightning Network, enabling faster and cheaper bitcoin transactions for users.
Binance first hinted at the Lightning Network integration in May and then set up Lightning nodes in June. Today's full integration means Binance users can now deposit and withdraw bitcoin via the Layer 2 network.
The Bitcoin Lightning Network sets up direct payment channels between users, allowing them to conduct off-chain transactions with minimal fees later settled on the main Bitcoin blockchain. Direct payment channels make sending and receiving bitcoin easier without congesting the main chain.
Lightning Network adoption
Lightning Network adoption has continued to grow over the last year, with its current total capacity of over 5,000 bitcoin (about $152 million), according to The Block's Data Dashboard. The Lightning Network capacity represents the total sum of bitcoin that can be transacted through the network at a given time.
Binance joins several crypto exchanges offering Lightning Network services to users, including Kraken and Bitfinex. In April, Coinbase CEO Brian Armstrong also suggested that the exchange would integrate the Lightning Network in the future.
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