Major crypto exchange Binance has started running nodes on the Bitcoin Lightning Network, a layer-two payments solution for the world’s largest cryptocurrency.
Binance Has Started Running Nodes on the Bitcoin Lightning Network
Major crypto exchange Binance has started running nodes on the Bitcoin Lightning Network, a layer-two payments solution for the world’s largest cryptocurrency. This is seen as a key step towards enabling Lightning Network-based deposits and withdrawals on the platform. Binance confirmed its new Lightning nodes in a tweet on June 20, but said that more technical work is needed before the integration is complete.
The Lightning Network allows users to create payment channels and transact off-chain with minimal fees and fast confirmation times. The channels can be closed and settled on the Bitcoin blockchain whenever necessary. This reduces the load and congestion on the main network, especially during periods of high demand. Binance experienced such a situation on May 7, when a spike in BRC-20 transactions, driven by the popularity of memecoins, caused delays and bottlenecks on the Bitcoin network. Binance announced its intention to integrate the Lightning Network to address this issue in a tweet on May 7.
