Bitcoin Lightning Network can ease quicker and simpler deposits and withdrawals.
Binance is aiming to incorporate the Bitcoin Lightning Network to avoid delays. Binance stated that there were new lightning nodes that smart observers had recently discovered.
There is still more technical work left, though. Binance didn’t provide any more information on a potential completion date. Binance stated in a tweet on Tuesday that it would update once Lightning was completely integrated.
The Lightning Network was developed on the Bitcoin network. It is a layer-2 scalability solution. Users can transfer and receive Bitcoin (BTC) with ease and speed for a minimal fee. Users can transfer and receive Bitcoin (BTC) with ease and speed for a minimal fee.
When Binance halted BTC withdrawals twice in a week, each time for around two hours, due to an upsurge of outstanding transactions on May 8, it gave a sign about integrating the lightning network.
According to a blog post by Binance, “the Bitcoin network has struggled to process a large number of transactions, currently managing just seven to ten transactions per second.”
The exchange stated that because of this constraint, initiatives like the Lightning Network, which can speed up transactions without affecting the main network, have become more and more popular.
The Lightning Network is already included in the systems of exchanges such as Bitfinex, Kraken, River Financial, and OKX.
In contrast to Visa’s processing speed of about 65,000 transactions per second, Kraken asserts that the Lightning Network can handle millions of transactions per second.
Data from Glassnode reveals that Lightning Network capacity has been increasing steadily over the past 18 months despite a decline in the price of Bitcoin and that it presently stands at roughly 5,400 BTC ($145 million).
Even though Lightning payment channels have a significant impact on the cost of Bitcoin transactions, they also come with considerable centralization risk and additional trust presumptions and thus have had a difficult time gaining widespread acceptance.