Binance Successfully Integrates Bitcoin Lightning Network for Faster and Cheaper Transactions
Crypto exchange giant Binance has completed the integration of the Bitcoin Lightning Network, enabling its users to deposit and withdraw the world’s number one crypto through this popular Layer 2 (L2).
Bitcoin Lightning Network is a second-layer solution that addresses scalability issues. It uses payment channels in order to settle transactions without having to wait for block confirmations.
Not only does the protocol allow for faster bitcoin transactions, but they’re also cheaper. Additionally, it significantly increases the network’s throughput and adds another layer of user security and anonymity.
Binance first spoke of integrating the L2 back in May, after it had experienced issues due to the volume of pending transactions.
It followed that up with setting up Lightning nodes in June. “Some eagle-eyed users spotted our new lightning nodes recently. Yes – that’s us,” said the exchange at the time, adding that “there’s still more tech work to be done.”
And today, Binance announced that it completed the integration, meaning that deposits and withdrawals for BTC “are now open on the Lightning Network.”
Users are to find their assigned bitcoin deposit address on the Lightning Network within the Deposit Crypto page.
The exchange also explains how to deposit and withdraw BTC via the network on the FAQ page.
‘No Need to FUD’
Binance said today that it had shortly experienced “a tech issue with the withdrawal system,” that lasted for about 10 minutes. “Should be all fixed now. No need to FUD [fear, uncertainty, and doubt],” added CEO Changpeng Zhao (CZ).
CZ also commented on the recent layoff news. The exchange reportedly fired about 1,000 workers in recent weeks, with more layoffs said to be coming.
However, CZ stated that the numbers reported by the media are exaggerated. He confirmed that the “involuntary terminations” have happened but said that the company is still hiring.
That said, several top Binance executives resigned earlier this month in response to CZ’s handling of the investigation by the US Department of Justice (DoJ).
These include General Counsel Hon Ng, chief strategy officer Patrick Hillmann, SVP for Compliance Steven Christie, and former IRS agent Matthew Price.
Meanwhile, another big, Binance-related news came several days ago, as it was revealed that the BNB Beacon Chain mainnet is set to add a new feature in its upcoming hard fork, which will allow the blockchain to “halt” the production of new blocks in certain scenarios.
The BEP-255, set to be introduced in the “ZhangHeng” upgrade on July 19, will enable the chain to locate reconciliation errors, after which “the blockchain will panic and stop producing new blocks.”