Binance crypto exchange has successfully integrated Bitcoin Lightning Network for BTC withdrawals and deposits on its platform.
Binance affirmed the development in a July 17 blog post, noting that users can now use the layer-2 scaling solution for BTC withdrawals and deposits.
When consumers withdraw or deposit Bitcoin, “LIGHTNING” will be available. BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20 are additional choices.Â
Binance first hinted at the integration of the Lightning Network in May after momentarily suspending BTC withdrawals due to an influx of pending transactions caused by “the recent surge in BTC network gas fees.”
The vast majority of the increase in transaction fees is attributable to creating meme coins on Bitcoin in the form of BRC-20 tokens — a new token standard on the network.
Binance later confirmed on June 20 that it was integrating the Lightning Network, shortly after users discovered Binance’s Lightning nodes.
Binance has adopted the Lightning Network alongside Bitfinex, River Financial, OKX, Kraken, and CoinCorner, among other prominent exchanges.
In April, Coinbase CEO Brian Armstrong also indicated his intent to incorporate the Bitcoin layer 2 network. However, he did not provide a timeline for when this may occur.
By allowing users to establish off-chain transaction channels, the Lightning Network aims to make Bitcoin transactions faster and less expensive.
