The Lightning Network received a new member after the popular crypto exchange OKEx announced the integration of this Bitcoin scaling solution. The Lightning Network is a second layer protocol that allows users to conduct transactions via private payment channels. This strategy increases the efficiency of Bitcoin because Lightning Network transactions only post to the network once the payment channel is closed. Consequently, its considered Bitcoin’s best strategy to combat network congestion,
Combat Customer Concerns
As Bitcoin continues to see growing adoption the network continues to see more use. Unfortunately, more congestion on the network also increases the cost and time for transactions. While many exchanges have decided to just let their users soak up these fees, others, such as the OKEx, have taken a pro-active approach to these issues by integrating the Lightning Network directly into their functionalities.
OKEx recognized that users were becoming discouraged from trading the world’s first cryptocurrency due to these added costs. By adding support for the Lightning Network, the exchange has proven to the market that it’s ready to take all necessary steps to improve its UX and remain competitive.
In a recent interview, developers discussed the overall goal of their integration. The OKEx team discussed how the decision helps demonstrate support for Bitcoin on all levels. The maneuver was cheered by LN-users as it is sure to increase the number of active Lightning Network nodes significantly in the coming weeks.
Users can take advantage of this revolutionary protocol in a couple of different ways. For example, Bitcoin traders are now offered the option to select Lightning Network deposits and withdrawals. These transactions are considerably faster than traditional deposits that can take up to an hour to complete. Traders can now fund their accounts in near real-time using the new system.
Another huge benefit users are sure to appreciate is lower transaction fees. On Average, the current Bitcoin transaction fee is around $15. In comparison, the Lightning Network offers Bitcoin traders far better rates. The average Lightning Network transaction fee is under $1.
Lower fees are always a major draw for day traders. These advanced crypto users can conduct 20+ trades a day. Additionally, whale investors pay enormous fees for their large transactions. Now professional and regular traders can hold more of their profits. Consequently, OKEx is now a more attractive option to all cryptocurrency traders seeking higher ROIs.
The Lightning Network lives up to its name in terms of transaction speeds. Currently, Bitcoin users can see a 30 min-hour delay in transaction processing times. These delays can prove to be costly when the market is as volatile as it is currently. This volatility can shave off your profits and leave you completely unresponsive to the fast-moving market conditions experienced by today’s traders. OKEx users can send millions in Bitcoin in seconds utilizing this technology. When you couple these increased speeds with the lower fee structure of the Lightning Network, it’s easy to see OKEx made the right move.
OKEx – A Pioneering Exchange that’s Ready to Embrace Innovation
The addition of the Lighting Network to OKEx represents another major milestone for the protocol. Over the last couple of months, more exchanges have headed the call from investors to provide more cost efficient alternatives. This latest maneuver is sure to help inspire more major platforms to follow OKEx’s lead. Its also sure to boost the platform’s market positioning as more investors realize they are paying too much to trade Bitcoin on other platforms.