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.


© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

Editor

To contact the editor of this story:
James Hunt at
[email protected]