Coinbase announces Integration of Bitcoin Lightning Network
San Francisco-based leading public exchange Coinbase announced today that it has rolled out support for the Bitcoin Lightning Network. This move aims to enable instant and low-cost Bitcoin transfers for users.
Starting today, support for the Lightning Network via @lightspark will begin rolling out.
Enjoy instant, low-cost BTC transfers.
Learn more: https://t.co/6YPiWgIyyf pic.twitter.com/ufOhO7Qe7i— Coinbase 🛡️ (@coinbase) April 30, 2024
According to Coinbase's official announcement via the company blog, users will have the choice of processing their bitcoin transactions on the traditional Bitcoin network or using Lightning for faster and cheaper transactions.
Previously, Coinbase processed bitcoin transfers "on-chain," which meant that they could take between ten minutes and two hours and resulted in high fees during network congestion.
Emphasizing the benefits of the Bitcoin Lightning Network, the company added that the global payments system in place today is far too expensive and slow to provide adequate services to people globally. Compared to traditional finance, blockchain technology allows for faster, more secure payments at much lower costs.
This is why Coinbase, the second-largest crypto exchange by trading volume, is partnering with Los Angeles-based Lightspark to integrate the Lightning Network. The goal is to create a one-second, one-cent worldwide payment system that makes everyday financial tools accessible to all at an affordable cost.
Recall that on April 3, Lightspark was selected as Coinbase's integration partner. CEO and co-founder of Lightspark, David Marcus, referred to the partnership announcement on the X platform (formerly known as Twitter) as yet another "significant milestone" for Lightning at the time.
The cost of sending Bitcoin internationally is 20 times less expensive with Coinbase's Lightning Network integration than it is with credit card transactions, where fees average 2% and are a fraction of the $30 paid for wire transfers. While aiming to reduce fees and transaction times, Coinbase is demonstrating its support for Bitcoin.
The lighting network launched in 2018 is a second-layer (layer-2) Bitcoin solution that makes transactions faster and cheaper. It is a well-known network and ecosystem designed to solve the Bitcoin blockchain's scalability problems, allowing for more efficient transfers.
Customers can instantly send, receive, or pay with bitcoin on Lightning directly from their Coinbase account. This enhances the overall Bitcoin experience for users and encourages BTC’s wider adoption as a digital currency for daily transactions.
The statement concluded that Coinbase’s Lightning Network integration is yet to be available in all regions, and it is progressively rolling out Lightning support to their users.
Coinbase support for the Bitcoin Lightning network is coming a bit late, as other exchanges such as Binance and Kraken have already integrated it for some time now.
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