Leading cryptocurrency exchange Binance has finally completed its integration of the Bitcoin (BTC) Lightning Network. The introduction of this crypto Layer-2 scaling solution on its platform is to facilitate Bitcoin withdrawals and deposits. Notably, this announcement comes barely one month after Binance hinted at plans to integrate Bit Lightning Network.
Binance Embraced BTC Lightning Network After Huge Outflows
Binance hinted at the Lightning Network in May after the exchange suffered massive outflows and suspended BTC withdrawals from its platform. At the time, a total outflow of almost 200,000 BTC on Binance within two days was reported. Based on the market value of Bitcoin during this period, the outflows were worth around $5.5 billion. Binance decided to make alterations to its fees to avoid a recurrence in the future.
Hence, the crypto exchange decided that for pending transactions, they will be replaced with higher transaction fees to achieve faster transactions. Most of these pending transactions were attributed to “the recent surge in BTC network gas fees.” Furthermore, this surge in transaction fees was associated with the creation of memecoins on BTC in the form of BRC-20 tokens, a new token standard on the network.
Binance Users Get to Choose LIGHTNING
Additionally, Binance confirmed that it is working to improve Bitcoin Lightning Network withdrawals which would translate to faster and cheaper off-chain transactions. The onboarding of the BTC Lightning Network solution was scheduled for June 20th. Its integration was billed to cause a tangible drop in the rate of withdrawal congestion.
With the latest development, once Binancians try to withdraw or deposit Bitcoin, they are now at liberty to select the “LIGHTNING” option. Previously existing options are BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.
Coinbase to Join Binance, Bitfinex and Others
Binance has successfully joined the likes of Bitfinex, River Financial, OKX, Kraken and CoinCorner as the other well-known crypto exchanges that have embraced the Lightning Network. Brian Armstrong, the Chief Executive Officer (CEO) of American cryptocurrency exchange Coinbase recently suggested that the firm would likely integrate the L2 scaling solution soon.
“My tweets auto-delete after some number of months, so there is no search history. Lightning is great and something we’ll integrate,” Armstrong tweeted in response to Twitter user identified as @w_s_bitcoin.