Crypto Exchange Binance Completes Integration of Bitcoin Lightning Network
On Monday, July 17, the world’s largest crypto exchange by market cap, Binance, confirmed the integration of the Bitcoin Lightning network on its platform. The integration aimed at boosting Bitcoin (BTC) withdrawals and depository services.
In a blog post dated July 17, the Binance team outlined the significance of its latest development. The Bitcoin Lightning Network will enable Binance customers to access the layer-2 scaling network in BTC withdrawals and deposits.
Binance Intergrates Bitcoin Lightning Network
Soon after the integration, the Binance users were allowed to explore a new feature dubbed the “LIGHTNING” option on the platform. The release of this development marked an achievement in enhancing network activity.
A few months ago, the Binance team halted withdrawals in two rounds due to spiking transaction fees. Following the unplanned suspension of withdrawals the Binance team forced to explore practical ways to reduce gas fees.
In May, Binance announced the integration of the Bitcoin Lightning network on its platform. A lightning network (LN) consists of federated models that support instant payment at a relatively low cost.
In the initial development phase, the Binance technical team affirmed that the successful integration of the said Bitcoin Lightning Network will enable the user to avoid flooded blockchain. The development aimed at allowing the user to transfer Bitcoin from their wallets.
While Binance continues to improve its network capability, its top rivals, including OKX, Kraken, Bitfinex, and CoinCorner, have already integrated the lighting network.
Effect of Increase in Gas Fees
The spiking transaction fees have stemmed from the ongoing creation of meme coins on the Bitcoin blockchain. Recently BRC-20 standard has gained popularity in the crypto space due to its enormous potential to support the minting of meme coins.
A revisit of recent data revealed that approximately 8500 tokens, consisting of meme coins and Pepe coins, had been minted on the BRC-20 standards. The meme coin craze on the BRC-20 tokens has contributed mainly to the surge of Bitcoin network gas fees, which resulted in network congestion.
The recurrence of the network congestion on Binance platform necessitated the crypto exchange to begin working on the Bitcoin Lightning network last month. In the preliminary integration steps, the developers introduced operating nodes on the lightning network.
Afterward, the Binance team engaged in completing multiple technical tasks before the integration of the lightning element. Immediately after rolling out of the lighting nodes, the community-made roll-up trends on Twitter to express their excitement.
The Binance development challenged Coinbase to address the network congestion issues on its trading platform. A Twitter statement issued by the chief executive of Coinbase, Brian Armstrong, on April 8 revealed plans to integrate the lightning features.
Even though the CEO did not announce the dates for the integration, he remains optimistic that the lightning element is a good thing. He rubbished the Twitter critics who attacked him for ignoring the network.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
