Coinbase to integrate Bitcoin Lightning Network in bid to drive adoption

Coinbase CEO labeled bitcoin “the most important asset” Tuesday following an announcement his company would integrate Lightning

article-image

Mia Stendal/Shutterstock modified by Blockworks

share

After more than a month of public deliberations, Coinbase has finally decided to integrate Bitcoin’s Lightning Network onto its exchange platform.

CEO Brian Armstrong said Tuesday that his publicly-listed company would do its part to advance “faster / cheaper” transactions, made possible by the technology’s design.

“Bitcoin is the most important asset in crypto,” Armstrong said in a post on X, formerly Twitter. A timeframe for the integration was not provided. Coinbase declined Blockworks’ request for comment.

Following in the footsteps of Jack Dorsey’s Cash App and David Marcus’ Lightspark, the development on Tuesday adds yet another step in the slow march toward the adoption of bitcoin payments — a core concept initially intended for the 14-year-old crypto.

The Lightning Network is a layer-2 solution built on top of the Bitcoin blockchain that aims to enable fast and scalable transactions. 

In essence, Lightning allows two parties to open a payment channel between them, bypassing the need to record every single transaction on the Bitcoin blockchain.

Read more: Binance boosts Bitcoin Lightning Network with promised integration

It was originally conceived to address some of the scalability issues inherent in Bitcoin’s design, such as high fees and slow transaction times during periods of higher network activity.

Early last month, Armstrong flagged that his company would begin exploring how to best add Lightning, calling the idea “non-trivial” but “worth doing.”

“Not sure why you think we’re ignoring Bitcoin — we’ve onboarded more people to Bitcoin than probably any company in the world,” the CEO said at the time in response to public questions from Dorsey.

“I’m all for payments taking off in bitcoin,” Armstrong said last month.

Dorsey’s Block subsidiary, Cash App, announced additional Lightning support for Bitcoin in October of last year following initial integration eight months earlier.


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

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

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

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member