Binance has finalized its integration of the Lightning Network this month. The maneuver enables users to enjoy faster transactions and withdrawals. Additionally, it lowers the fees paid by the average user significantly.
Binance announced the maneuver last month with much praise from the crypto community. The move follows similar decisions by other major CEXS in the market. Notably, CEXs seek to remain a viable option as the market has gotten more competitive due to DEXs lowering prices and added privacy.
- Source – Twitter Binance Lightning Network @Michal48824707
According to company documentation, Binance decided to integrate the Lightning Network following months of increased congestion which culminated in the platform halting withdrawals briefly. Binance showed that the Bitcoin meme pool had become significantly congested with 420,000 unconfirmed transactions.
Binance Fights on Rumors of Fault
The move caused community backlash on social media as many are still weary from major CEX failures this year. Binance executives took to social media to quell concerns and reassure users that the pause was simply to clear transactions and begin the integration of the Lightning Network.
Bitcoin is no stranger to congestion concerns and this latest round of issues has been brought on by a combination of new functionality and growing users. The introduction of the BRC-20 protocol has caused a sudden influx of users to the main net recently.
BRC-20 is a token standard that was created by a Bitcoiner called DOMO using a system called the Ordinals protocol. It enables users to input small bits of code or text onto a particular satoshi. The result is Bitcoin gaining NFT options and programmability.
This new feature has been met with a huge response as there are now hundreds of thousands of BRC tokens in circulation. The majority of these tokens are NFTs (non-fungible tokens) which feature art or popular memes. In the future, BRC tokens may power LN-powered Dapps.
How To Leverage LN on the Binance Exchange
The new feature is easy to use which should make it more appealing for users. Anyone can select BTC-Lightning when depositing or withdrawing funds. Once selected, the platform automatically handles all the back-end actions such as ensuring there is a funded payment channel. To assist in these tasks, the exchange has decided to add several LN nodes in the coming months.
The World's Largest Exchange
Binance is the world's largest exchange in terms of trading volume. The massive platform has grown from a CEX into an entire blockchain and DeFi ecosystem. Today, the protocol encompasses CEX, DEX, DeFi features, and much more. These options have helped the exchange remain a top contender since its launch.
Bitcoiners Have Spoken
Regardless of how the market progresses, there is always a demand for low-cost Bitcoin transactions. Binance and other exchanges have heard these requests and are now ready to provide solutions. The Lightning Network is the right choice for these platforms due to its proven track record, support, and features. For these reasons and many more, the Lightning Network is the best option.