The US-based cryptocurrency exchange Coinbase has enabled support for the Bitcoin Lightning Network, a significant advancement in digital payments. Thanks to this, users may now send Bitcoin more quickly and affordably.
Coinbase Integrates the Lightning Network for Bitcoin
The announcement on Tuesday states that Coinbase’s objective of developing a “global payment system that is affordable and fast for its users” aligns with the integration of Lightning Network.
Before this, Coinbase handled Bitcoin transfers on-chain, which was more costly and frequently required a “significant” amount of time—between 10 minutes and two hours.
In contrast, quick off-chain Bitcoin transfers are made possible at a significantly lower cost thanks to the Lightning Network, which functions as a layer on top of the Bitcoin network.
The exchange added that the Lightning Network’s, Network has grown steadily since its launch in 2017, raising demand from Coinbase’s user base.
With this most recent connection, Coinbase customers may send, receive, and make payments for Bitcoin instantly from their Coinbase accounts via the Lightning Network. Regarding the issue, Coinbase said:
One of the most significant cryptocurrency assets is Bitcoin. Since our founding, we have made multiple investments through Coinbase Ventures and maintained our exchange to promote the Bitcoin ecosystem. By making Lightning more useful for millions of Coinbase users daily, adding support for Lightning contributes to the expansion of the crypto ecosystem.
There Are Regional Restrictions
Lightspark, a Coinbase partner company, expressed satisfaction with the launch and emphasized the significance of the Lightning Network in allowing Coinbase users to send and receive Bitcoin instantaneously from their Lightspark-powered Coinbase accounts.
It is crucial to remember that not all areas may have Coinbase’s Lightning Network integration available. Not all transfers can take advantage of the cost savings Lightning Network offers compared to the conventional Bitcoin network. The announcement said as it was coming to an end:
Coinbase is eager to use cryptocurrency to transform the established payment system further. Faster and less expensive access to capital is essential to close gaps in financial tool access, particularly for underbanked and unbanked areas. By releasing capital entangled in pointless costs and settlement delays, these blockchain-based technologies will enable people and companies to make more use of their financial resources.
As of this writing, Bitcoin has experienced a notable decline after reaching $67,300 in the previous week. It has now dropped to $58,700, indicating a significant drop in price over more extended periods.
BTC has dropped by 8% during the last seven days and more than 13% throughout the previous thirty days. Despite this recent volatility, it’s crucial to remember that the top cryptocurrency has maintained an amazing year-to-date growth of 107%.
Chart from TradingView.com; featured image sourced from Shutterstock
