Binance, one of the world’s largest crypto exchanges, is seeking to make a major upgrade to its Bitcoin infrastructure. After developer and Taproot Wizard founder Udi Wertheimer reported finding “Binance nodes” on the Lightning Network on June 16, the exchange giant has now revealed its intention to integrate Lightning, a layer two scalability solution built on the Bitcoin blockchain.
Binance onboards the Lightning Network
Although Binance made this announcement via Twitter in the early morning of June 20, the company did not provide a specific timeline for the completion of the Lightning Network integration, stating that there is still more technical work to be done. Notably, though, this move seems aimed at streamlining and expediting deposits and withdrawals for its users.
#Binance is working to integrate the #Bitcoin Lightning Network for deposits and withdrawals.
Some eagle-eyed users spotted our new lightning nodes recently. Yes – that’s us!
However, there’s still more tech work to be done. We’ll update once Lightning is fully integrated. https://t.co/N0oN8561sN
— Binance (@binance) June 20, 2023
Bitcoiners have been trying to convince @binance to add lightning support for 7 years
Today, Binance finally has its own lightning node!
What changed their minds? Base layer congestion DUE TO ORDINALS.
We do a lil magic 🧙♂️ pic.twitter.com/KyUFPcu4SH
— Udi Wertheimer (@udiWertheimer) June 20, 2023
Binance had hinted at the integration of the Lightning Network in May when it temporarily paused BTC withdrawals on two occasions due to a flood of pending transactions. The Lightning Network offers a solution to Bitcoin’s limitations by allowing users to send and receive Bitcoin rapidly and with minimal fees. With this in mind, many in the crypto-sphere had been on the lookout to ascertain whether or not the exchange would make good on the rumors.
“The Bitcoin network has struggled with processing a large number of transactions, currently managing just seven to ten transactions per second,” explained Binance in a May blog post. “This limitation has long been known as a drawback of the Bitcoin network and is why projects like the Lightning Network, which can speed up transactions without impacting the main network, have gained popularity.”
What the Lightning integration means for users
Notably, with this latest move, Binance joins the likes of Bitfinex, Kraken, River Financial, OKX, and others in integrating the Lightning Network into its platforms. Considering the network can reportedly handle millions of transactions per second, users on Binance already seem to be overtly pleased with the integration.
Although events are still transpiring in response to the U.S. Securities and Exchange Commission’s lawsuit against Binance, the implementation of Lightning on the exchange seems to mark a significant step forward — one that signals the platform’s evolution and desire to continually benefit users.
It wouldn’t be an understatement to say that the integration of this technology has the potential to revolutionize transaction speeds and reduce congestion on the Bitcoin network, providing a more seamless experience for Binance’s core customers. Yet, even at face value, Binance’s move to integrate Lightning demonstrates its commitment to enhancing the efficiency and accessibility of its platform: an essential functionality for fueling a more widespread adoption and mainstream acceptance of digital currencies.
Editor’s note: This article was written by an nft now staff member in collaboration with OpenAI’s GPT-4.
