Coinbase is considering integrating Bitcoin’s Lightning Network to facilitate quicker crypto payments.
The exchange’s CEO, Brian Armstrong, hinted at it in response to a tweet by Jack Dorsey. The Twitter co-founder, in his turn, questioned Coinbase’s approach toward Bitcoin (BTC) and Lightning Network adoption.
Armstrong voiced enthusiasm for integrating it into Coinbase, emphasizing that although the integration is complex, the advantages of facilitating speedier Bitcoin payments make it worthwhile.
Coinbase’s apparent lack of commitment to the Lightning Network has drawn criticism. Despite some doubts, Armstrong has repeatedly promised supporters that the network would be included in the exchange. However, the breadth and timetable of the integration remain unknown at this time.
Many competing cryptocurrency exchanges, including OKX, Binance, Kraken, and Bitfinex, have already adopted Lightning Network support. OKX launched its network in 2021, allowing customers to deposit and withdraw Bitcoin easily. In 2022, Kraken followed suit, praising the network for its speed and cheap fees while sending Bitcoin. Bitfinex, however, has begun using the Lightning Network this year.
Integration with the Lightning Network has the potential to speed up Bitcoin transactions. Off-chain transactions are possible if communication channels between parties are set up. When a transaction is completed, the corresponding channel closes, and the relevant information is added to the main Bitcoin blockchain, allowing for much quicker settlements.
In addition, conventional banks are now investigating Lightning Network. In March, Xapo Bank and Lightspark collaborated to add the network, enabling consumers to purchase Bitcoin via the bank.
