The world’s leading cryptocurrency trading platform has announced plans to integrate the Bitcoin Lightning Network (LN) into its platform for deposits and withdrawals. The stock exchange revealed this information via a Twitter post Earlier today following remarks on Binance nodes on the Lightning Network by some “fanatic” members of the crypto community.
Ambross, a data analytics company focused on the Lightning Network, published a dossier tweet Noting that the largest Kraken channel on the LN was connected to the Binance node.
However, after confirming ongoing plans to adopt the Lightning Network, Binance stated that the integration is far from complete, and a full update will be available upon completion.
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The Bitcoin Lightning Network is a Layer 2 solution built on top of the Bitcoin blockchain. It is designed to provide solutions to two major issues affecting the core chain – scalability and speed.
The Lightning Network enables high transaction speeds and cheap network fees without changing the efficiency of the underlying blockchain. It aims to combat network congestion as the number of Bitcoin users continues to rise.
By integrating LN with its platform, Binance is looking to improve the overall process of Bitcoin withdrawals and deposits by its users.
BTC Trading At $26,944.10 | Source: BTCUSD Chart on Tradingview.com
The popularity of the Lightning Network continues to rise
Upon fully integrating the Lightning Network, Binance joins the growing list of exchanges to integrate this project, including Kraken, Bitfinex, OKX, etc.
Other notable brands with LN integration include the best crypto wallet Exodus and mobile payment service Cash App. Along with additional data from the DeFi analytics site, devilamareflecting the explosive growth rate of the Bitcoin Lightning Network.
According to DeFillama, the Total Value Locked (TVL) on the Lightning Network has gone from $81.276 million to its current value of $144.88 million over the past year, which is a staggering 78.25% increase.
Source: DeFillama
Regulatory and operational issues remain at Binance
While the news of the upcoming LN integration has generated a lot of excitement among the Binance community, the exchange’s current regulatory issues remain a concern for its 128 million users worldwide.
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In the US, Binance.US is stuck on file legal battle With the US Securities and Exchange Commission (SEC) on charges of operating an unregistered exchange and fraud, among other things.
Meanwhile, the European stock exchange’s operations have been in turmoil recently, after it deregistered its subsidiaries operating in the European Union United kingdom Cyprus with a choice It closed its market in the Netherlands Due to difficulties in obtaining a Virtual Asset Service Provider (VASP) license from the Dutch government.
However, Binance remains the largest cryptocurrency exchange in the world, with a daily trading volume of more than $76 billion.
Featured image: Reuters, chart from Tradingview.