Binance, one of the world’s largest cryptocurrency exchanges, has announced its progress on integrating the Bitcoin Lightning Network for faster deposits and withdrawals. CEO Changpeng Zhao CZ further confirmed the development. The decision to adopt the Lightning Network comes after Binance faced challenges with a large volume of pending BTC withdrawals on May 8.
Bitcoin Lightning Network On Binance
The integration of the Bitcoin Lightning Network by exchange is underway with some technical works pending. They tweeted about the progress saying:
Some eagle-eyed users spotted our new lightning nodes recently. Yes – that’s us!
By leveraging the Lightning Network, Binance can enable faster and more scalable Bitcoin transactions, offering a smoother user experience. Update for full-integration by Binance is awaited.
In a tweet by CZ, he expressed his exchange’s dedication to continuous growth. He stated,
“Slowly, but we keep building…”
Users will benefit from reduced transaction costs and quicker settlement times, improving overall efficiency and convenience. Additionally, the Lightning Network’s off-chain capabilities enhance the scalability of Bitcoin, addressing concerns about network congestion and transaction delays.
Response To BTC Withdrawal Challenge
Coingape reported that Binance decided to pause BTC withdrawals citing a spike in pending transactions as it wasn’t able to offer high enough rewards to miners to log the trades. CZ handled this bull market issue, as there was a sudden surge in Bitcoin network gas fees, highest in nearly three years since July 2021.
To address the situation, Binance replaced the pending BTC withdrawal transactions with higher fees, ensuring their inclusion in mining pools and eventual confirmation on the blockchain.
They tweeted later that day about plans to enable BTC Lightning Network prevent a similar recurrence in the future.
The post Just-In: Binance CEO CZ Confirms Progress On Bitcoin Lightning Network appeared first on CoinGape.