Binance integrates Bitcoin Lightning Network

By: Henry Felix

Binance integrates Bitcoin Lightning Network

July 17, 2023 6:11 AM

Binance decided to integrate the Bitcoin Lightning Network less than a month before this announcement.


The Bitcoin Lightning Network has been fully integrated into cryptocurrency exchange Binance's platform for deposits and withdrawals of BTC.


In a July 17 blog post→, Binance confirmed the news, writing that the layer-2 scaling solution is now available for BTC deposits and withdrawals on the exchange.


Users can now choose "LIGHTNING" as a payment method when making Bitcoin withdrawals and deposits. Other alternatives are the BNB Smart Chain (BEP20), Bitcoin, the BNB Beacon Chain (BEP2), Bitcoin (SegWit), and Ethereum ERC20. 


Binance originally hinted at Lightning Network integration in May, when it was forced to briefly halt BTC withdrawals due to a backlog of outstanding transactions triggered by "the recent spike in BTC network gas fees."


The introduction of BRC-20 tokens, a new token standard on the Bitcoin network, has been widely blamed for the meteoric rise in transaction costs.

 


Binance later announced on June 20 that it was planning to join the Lightning Network, shortly after users discovered its Lightning nodes. 


In adopting the Lightning Network, Binance follows in the footsteps of other major exchanges including Bitfinex, OKX, Kraken, and CoinCorner.


In April, Coinbase CEO Brian Armstrong announced his desire to incorporate the Bitcoin layer 2 network on Coinbase. He did not, however, provide a timetable for when this would occur.


The Lightning Network is an off-chain transaction channel creation service for Bitcoin that attempts to reduce transaction fees and increase transaction speeds.