Bitcoin Lightning Network is now supported by Binance

Adoption of Bitcoin’s leading scaling solution, Lightning Network, has steadily grown since 2020, with Binance now on board

article-image

Mia Stendal/Shutterstock modified by Blockworks

share

Crypto exchange Binance enabled deposits and withdrawals on Bitcoin’s Lightning Network on Monday.

Lightning is now alongside other options including Bitcoin mainnet, BNB Smart Chain and Ethereum.

Lightning serves as a layer-2 scaling solution for Bitcoin. The network is intended to speed up transactions and reduce fees, reminiscent of Ethereum layer-2 protocols like Optimism.

It supports direct payment channels between users, allowing bitcoin (BTC) to be sent off-chain while settling on-chain in batches. This design has presented its own risk profile, with Lightning developers warning users that the software is still under development.

“Most software deployed in the Lightning Network is still considered beta software, meaning it may contain bugs that could lead to irrevocable loss of funds. For most operators, the biggest risks are data loss from power outages, hardware failures and bugs,” per Lightning’s FAQ.

Bitcoin sent over Lightning should appear in seconds, with the network often used for micropayments and real-world transactions. Twitter, for instance, enabled BTC tipping in 2021 via payments app Strike, which uses Lightning.

Binance pledged to integrate Lightning last month but said doing so required further technical work.

Other exchanges such as Bitfinex, Kraken, River Financial and OKX have already integrated Lightning into their platforms. Coinbase CEO Brian Armstrong in April hinted that his platform may do the same but hasn’t yet provided a specific timeline.

Lightning adoption has steadily increased over the past few years, although it hasn’t been without hiccups. There’s about 4,900 BTC ($148.2 million) on the network right now — up from under 1,000 BTC ($30.2 million) in 2020.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Sponsored

The convergence of AI and blockchain on Polkadot represents a groundbreaking opportunity for investors and developers alike

article-image

The company is making public a previously private offer rejected by Bitfarms’ board of directors last month

article-image

Semler Scientific, a publicly traded medical tech company, joined MicroStrategy by buying up millions of bitcoin

article-image

As someone who’s been knee-deep in the trenches of blockchain development, I can’t help but wonder if these behemoths are really cutting it anymore

article-image

UNI and MKR are suffering from the successes of their respective protocols

article-image

Maybe there’s no silver bullet to avoiding most tokens dumping after launch…