Coinbase intends to incorporate the Bitcoin Lightning Network (LN). By moving transactions off the main blockchain, the Lightning Network enables users to send and receive Bitcoin quickly and cheaply in a secure manner.
- Coinbase plans to incorporate Bitcoin Lightning Network into its platform.
- The Lightning Network is intended to make Bitcoin transactions as quick and inexpensive as possible.
Coinbase, the largest cryptocurrency exchange in the US, has announced plans to incorporate the Bitcoin Lightning Network (LN) into its platform.
This announcement came in response to a tweet from Bitcoin advocate Wicked, who questioned the company’s lack of public comments on the scaling solution.
Armstrong stated that his tweets are automatically deleted after a few months, which explains the lack of public comments on the Lightning Network. He also declared on Twitter, “Lightning is great and something we’ll integrate.”
While no specific timeline has been provided, this move will align Coinbase with other Lightning Network exchanges such as Kraken, Bitfinex, and BitStamp amongst others that already support the Layer 2 solution.
The Lightning Network is primarily intended to make Bitcoin transactions as quick and inexpensive as possible by offloading some transactions to the Lightning Network’s layer 2 blockchain, allowing the core Bitcoin blockchain (layer 1) to move more quickly.
The decision by Coinbase to integrate the Lightning Network is critical, particularly given the current regulatory environment, with many countries clamping down on cryptocurrency exchanges. As a result, incorporating the Lightning Network will allow Coinbase to provide faster and cheaper transactions while maintaining its market competitiveness.
It is also worth noting that the Bitcoin exchange Paxful, which processes millions of dollars in Bitcoin transactions in emerging markets, recently announced that it will support Lightning payments. This integration could enable millions of users to make quick, efficient, and inexpensive Bitcoin payments.