Binance Successfully Integrates Bitcoin Lightning Network For Improved Transactions

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Niazdarold

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Binance, the worldwide leading cryptocurrency exchange by volume of trade, revealed today that it has finished integrating the Lightning Network, the popular scaling solution that runs on top of the Bitcoin blockchain.

Binance subscribers are permitted to use the Layer-2 scaling solution for Bitcoin withdrawals and deposits, according to an organization announcement on Monday. Users must pick the "BTC-Lightning" network when making deposits or withdrawing Bitcoin from the exchange to use the newly introduced function.

Binance announced a few weeks ago that the company was currently in the process of introducing Lightning nodes into its infrastructure.

The exchange first announced its desire to offer Lightning withdrawals in May, following a period of increased congestion on the Bitcoin network that forced Binance to briefly prohibit BTC withdrawals.

During that time, the Bitcoin mempool, which stores pending transactions, had almost 420,000 unprocessed operations, surpassing even the heights seen during the 2021 bull run.

The advent of the BRC-20 token standard based on the Bitcoin Ordinals protocol was partly responsible for the considerable increase in average transaction costs for Bitcoin.

Other notable cryptocurrency exchanges that have integrated Lightning Network capabilities include Kraken, OKX, and Bitfinex, as well as the mobile payment platform Cash App.

Multiple addresses

Separately, Binance announced Monday (17-07-2023) that it has developed a new functionality that allows customers to receive numerous deposit addresses for a single network.

Users can initially create several deposit accounts exclusively for tokens generated on the Ethereum network (ERC-20) and Ethereum-compatible networks such as Arbitrum One or BNB Chain, with support for additional networks coming later.

Users can receive up to 20 deposit addresses for each network, according to Binance. The exchange will assess this quota on a regular basis to determine whether an increase or decrease in the number of deposit addresses is required.


Finally, the effective integration of the Bitcoin Lightning Network by Binance is regarded as a big and beneficial step in the crypto sector. The Lightning Network addresses the scalability limits of the original Bitcoin network by providing quicker and less costly Bitcoin transactions. Binance's usage of this technology demonstrates its dedication to improving the customer experience and making cryptocurrency transactions more efficient. This integration has received excellent feedback from industry experts and is likely to pave the path for greater Lightning Network adoption across the crypto community.
 

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