Bitrabo Editorial
Leading cryptocurrency exchange Binance has announced its plans to integrate the Bitcoin Lightning Network (LN) into its platform for deposits and withdrawals. The exchange made the announcement in a recent Twitter post after some members of the crypto community noticed Binance’s nodes on the Lightning Network.
Data analytics firm Ambross reported that Kraken’s largest channel on the LN was connected to a Binance node.
However, Binance clarified that the integration is still in progress and a full update will be provided once it is completed.
The Bitcoin Lightning Network is a layer two solution built on the Bitcoin blockchain, designed to address the scalability and speed issues faced by the underlying chain. It enables fast transactions and lowers network fees without compromising the efficiency of the blockchain. Its goal is to tackle network congestion caused by the increasing number of Bitcoin users.
By integrating the Lightning Network, Binance aims to enhance the process of Bitcoin deposits and withdrawals for its users.
BTC Trading At $26,944.10 | Source: BTCUSD Chart on Tradingview.com
Lightning Network Popularity Continues to Grow
Once the Lightning Network integration is complete, Binance will join other exchanges such as Kraken, Bitfinex, and OKX that have incorporated this technology. Popular brands like Exodus wallet and Cash App also have Lightning Network integrations. According to DeFillama, a DeFi analytics site, the Total Value Locked (TVL) on the Lightning Network has increased from $81.276 million to $144.88 million in the past year, representing a growth rate of 78.25%.
Source: DeFillama
Binance Faces Regulatory and Operational Challenges
Although the announcement of the Lightning Network integration has generated excitement among Binance users, the exchange is still dealing with regulatory issues. In the United States, Binance.US is embroiled in a legal battle with the Securities and Exchange Commission (SEC) over allegations of operating an unregistered exchange and fraudulent activities. In Europe, Binance had to deregister its subsidiaries in the UK and Cyprus and shut down its market in the Netherlands due to difficulties in obtaining necessary licenses.
Despite these challenges, Binance remains the world’s largest cryptocurrency exchange, with a daily trading volume exceeding $76 billion.
Featured Image: Reuters, chart from Tradingview.