Binance is integrating the Bitcoin Lightning Network to address issues with BTC deposits and withdrawals that occurred last month.
The CEO of Binance, Changpeng Zhao CZ, confirmed the development and emphasized the exchange’s commitment to improvement. The decision to utilize the Lightning Network came after Binance faced challenges on May 8, which resulted in many pending BTC withdrawals.
Although there are still technical hurdles to overcome, the crypto exchange announced on Twitter that integrating the Bitcoin Lightning Network will enable faster and more scalable Bitcoin transactions, offering a better user experience.
They expect to provide a full update on the integration in the future. By implementing the Lightning Network, users will benefit from lower transaction fees and faster settlement times, improving overall efficiency and convenience.
Additionally, the off-chain features of the Lightning Network help address scalability issues associated with network congestion and transaction delays.
Response To BTC Withdrawal Challenge
In response to the BTC withdrawal challenge, Binance temporarily suspended withdrawals due to a surge in pending transactions and difficulties in providing sufficient rewards to miners.
By replacing the pending BTC withdrawals with higher fees, Binance resolved the issue and ensured inclusion in mining pools and confirmation on the blockchain. Following this incident, the exchange expressed its intention to leverage the BTC Lightning Network to prevent similar occurrences.
