Leading crypto exchange Coinbase announced that it will integrate Lightning Network. Thus, it will enable almost instant Bitcoin transactions with minimal fees. The partnership with Lightspark aims to optimize Lightning Network infrastructure for millions of users. Despite lagging adoption, the Lightning Network continues to grow and has a capacity of approximately 5,000 Bitcoins.
Critical Bitcoin move from Coinbase!
cryptokoin.comAs you follow from , the market is going through a bloodbath. Leading crypto Bitcoin is struggling to avoid losing $60,000. Altcoins, on the other hand, are witnessing deeper losses. In this negative atmosphere, the Bitcoin move came from Coinbase, the largest crypto exchange in the USA. The exchange has officially added support for Lightning Network, a layer 2 solution. Thus, it will make faster and cheaper Bitcoin transactions possible. In this context, Lightspark shared the following:
We’re excited to announce that Coinbase has begun offering support for the Bitcoin Lightning Network powered by Lightspark. Coinbase customers can instantly send, receive or pay with Bitcoin on Lightning directly from their Coinbase account.
The implementation, which started today, comes after the exchange announced that it would adopt this protocol seven months ago. The Lightning Network is designed to make Bitcoin more convenient by providing near-instant, low-cost payments as opposed to traditional on-chain methods, which are often slower and more costly.
Benefits of Coinbase’s move for users
Before the integration, Bitcoin transactions on Coinbase were processed only on-chain. This took place in approximately 10 minutes to two hours. As a result, this led to high fees during the network’s peak periods. Lightning Network runs on top of the Bitcoin Blockchain. It also uses bi-directional payment channels to process off-chain transactions. Thus, it reaches instant transaction speeds with minimum fees.
Coinbase’s protocol expert, Viktor Bunin, believes that the new integration will increase the use and availability of Bitcoin worldwide and is a significant development in the cryptocurrency ecosystem. For payments on the Lightning Network, Coinbase has introduced a small fee of 0.1% for transfers made within seconds. Coinbase sets withdrawal limits at $2,000 with a $2 fee cap per transaction. The exchange has taken these measures to achieve a high successful payout rate, for which some adjustments can be made based on feedback and network liquidity.
Coinbase Partnership with Lightspark
To enable this transition, Coinbase teamed up with Lightspark, a company focused on Lightning Network infrastructure, with CEO David Marcus known for his previous roles at PayPal and Meta. This partnership focuses on building on Lightspark’s success in channel liquidity management and routing. It also shows that Coinbase is working on improving security and user experience. Marcus says this partnership is critical. Because he emphasizes that it enables many users in countries to benefit from fast and cheaper Bitcoin transactions.
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