Faster BTC Transfers: Coinbase Integrates Lightning Network
Key Takeaways
- Coinbase integrates the Bitcoin Lightning Network, a faster and more cost-effective trading option.
- Transactions on the Lightning Network are nearly instantaneous, but some transfers to self-custodial wallets may experience delays.
- Coinbase is working with Lightspark to enable integration.
Coinbase, one of the largest cryptocurrency exchanges, now integrated Bitcoin Integrate Lightning Network as a service.
This integration allows users to: Select Bitcoin Network or Lightning Network, A Layer-2 solution that speeds up transactions and reduces costs.
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Using the Lightning Network, Transactions are processed almost instantly. Coinbase points out: Transfers to certain self-custodial wallets may encounter delays or issues. Due to “unique implementation or fee structures.”
Users participating in this network process invoices.—Long string representing the transaction. This approach is faster compared to the Bitcoin network, where transactions can take anywhere from 10 minutes to 2 hours.
nominally Processing fee 0.1% You are charged for these transactions, which reduces your transaction costs.
For this integration, Coinbase selected Lightspark, a company led by former PayPal president David Marcus, as its partner. Lightspark supports the initiative by hosting Lightning nodes. Coinbase retains control of the Lightning signing keys. Via remote key signing settings.
With many competitors including Binance already supporting the Lightning Network, Coinbase’s adoption of this technology is a significant advancement in its service offering.
These improvements not only position Coinbase competitively in the market, but are also consistent with the industry trend toward faster and more economical Bitcoin transactions.
However, Coinbase recently received less favorable news. The U.S. Securities and Exchange Commission (SEC) filed a lawsuit alleging that a cryptocurrency exchange operated without proper registration.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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