Binance will Integrate Bitcoin Lightning Network for Faster Transactions
Last Updated on 6 November 2023 by CryptoTips.eu
The largest crypto exchange in the world, Binance, has announced plans to integrate Bitcoin Lightning Network on the platform. Lightning is a Layer 2 solution created to facilitate faster Bitcoin transactions.
With it, the scalability and high fee problems associated with Bitcoin are out of the way, and users can make lightning fast Bitcoin transactions. There are currently thousands of Lightning Network users worldwide, and the number keeps increasing.
By integrating the network on Binance, customers can more easily make Bitcoin withdrawals with much lower fees compared to the current situation. This is coming after Binance suspended Bitcoin withdrawals because of congestion on the exchange.
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.
— Binance (@binance) May 8, 2023
Our team has also been working on enabling BTC Lightning Network withdrawals, which will help in such situations.
Binance Suspends Bitcoin Withdrawals
As a result of congestion, Binance suspended Bitcoin transactions twice in 24 hours. The congestion due to a large volume of pending Bitcoin withdrawals, forced the exchange to bump up fees for the transactions to go through as miners prioritize transactions with higher fees.
We’ve temporarily closed #BTC withdrawals due to the large volume of pending transactions. Our team is currently working on a fix and will reopen $BTC withdrawals as soon as possible. Rest assured, funds are SAFU.
The team announced via its official Twitter handle earlier today.
This is the first time such a massive congestion is happening on the exchange, suggesting the need for more capacity, and there’s no better solution than Bitcoin’s Lightning network. Once integrated, it will be an effective solution to “to prevent this from happening again.”
Lightning Network’s Increasing popularity
Up to this point, Lightning network is a Layer 2 network used only for Bitcoin transactions, since the Bitcoin network can be slow and expensive. Recently though, there have been indications that the network can be used for altcoins as well.
Stablecoins are the first group of assets considered for this. The idea is to leverage the technology to confer the security of the Bitcoin network on altcoins since their transactions are already relatively fast and cheaper than Bitcoin’s.
According to the network’s developers, even entire decentralized exchanges will be supported by the network eventually, which will significantly reduce fraud on such exchanges. At this rate, it’s only a matter of time before every crypto exchange adopts Lightning Network to stay competitive.
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