Binance has announced its intention to implement Lightning Network, Bitcoin’s Layer 2 scaling protocol, on its platform after experiencing a congestion episode regarding withdrawals on the Bitcoin network. The exchange had to stop bitcoin withdrawals twice due to a huge backlog as a result of high transaction fees.
Binance has announced that it is working on Lightning Network withdrawals
Leading cryptocurrency exchange Binance recently announced that it is integrating the Lightning Network, a bitcoin-based scaling solution, into its platform. The exchange made the announcement after having to stop bitcoin withdrawals twice in one day due to network congestion.
The congestion issue referred to on Binance relates to the emergence of BRC-20 tokens, which are issued on top of the Bitcoin blockchain, and have overwhelmed BTC Mempool, has over 450,000 pending transactions with a $13 fee at the time of writing, according to blockchain data.
Implementing Lightning Network withdrawals will allow users the option to avoid the high fees it collects BTC Network when encountering this kind of congestion. binance announce That besides initiating this implementation, it will adjust the withdrawal fee to avoid encountering this problem in the future, and that it will continue to monitor the situation and adjust the fee accordingly.
Also, Binance advertiser:
This is a learning opportunity for us and we will do everything we can to prevent this from happening again.
to treat BTC Rumors
On May 7, the exchange paused BTC first-time withdrawals, stating that it was “experiencing a congestion issue”, and that the Binance team is “currently working on a fix so the network is stable” and vowed to reopen withdrawals as soon as possible.
Soon after, only bitcoin withdrawals reopened hanging Again due to the “high volume of pending transactions” on the exchange. This situation has led to widespread messages regarding large outflows from Binance-related trends. Changpeng ‘CZ’ Zhao, CEO of Binance, eviction This reports as FUD on social media.
binance explained The outflows were “actually movements between hot and cold Binance wallets due to… BTC Title Amendments” and that the reports were mistakenly identifying the exchange’s portfolios as being owned by others.
What do you think of Binance’s announcement of the Lightning Network’s implementation of withdrawals? Tell us in the comments section below.
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