- June 20, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
World-leading crypto exchange Binance has announced plans to integrate the Bitcoin Lightning Network (LN) on its platform for deposits and withdrawals. The exchange disclosed this information via a Twitter post earlier today following observations of Binance’s nodes on the Lightning Network by some “eagled-eyed” crypto community members.
Ambross, a data analytics firm focused on the Lightning Network, posted a tweet stating that Kraken’s biggest channel on the LN was connected to the Binance node.
However, having confirmed the ongoing plans to adopt the Lightning network, the Binance exchange has stated that the integration is far from completion, and a full update will be provided upon finalization.
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The Bitcoin Lightning Network is a layer two solution built on the Bitcoin blockchain. It was designed to provide solutions to two main issues impacting the underlying chain – scalability and speed.
The Lightning Network enables a high transaction speed and cheap network fees without altering the efficiency of its underlying blockchain. It aims to combat network congestion as the number of Bitcoin users continues to soar.
By integrating the LN with its platform, Binance looks to improve the overall process of Bitcoin withdrawals and deposits by its users.
Lightning Network Popularity Continues To Rise
Upon full integration of the Lightning Network, Binance joins the growing list of exchanges to have incorporated this project, including Kraken, Bitfinex, OKX, etc.
Other prominent brands with LN integrations include top crypto wallet Exodus and mobile payment service Cash App. That aside, additional data from the DeFi analytics site, DeFillama, reflects a massive growth rate in Bitcoin’s Lightning Network.
According to DeFillama, the Total Value Locked (TVL) on the Lightning Network has moved from $81.276m to its current value of $144.88m over the last year, representing a stunning percentage increase of 78.25%.
Binance Regulatory And Operational Troubles Still Linger
While the news of an upcoming LN integration has sparked much excitement among the Binance community, the exchange’s current regulatory troubles remain a concern for its 128 million users worldwide.
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In the United States, Binance.US is stuck in a legal battle with the US Securities and Exchange Commission (SEC) over the charges of operating an unregistered exchange and fraud, among others.
Meanwhile, the exchange’s European operations have been turbulent in recent times, having deregistered its operating subsidiaries in the United Kingdom and Cyprus while choosing to shut down its market in the Netherlands due to difficulties in obtaining a virtual assets service provider (VASP) license from the Dutch government.
Nevertheless, Binance stills remain the world’s biggest crypto exchange, with a daily trading volume of over $76 billion.
