In a message posted on Twitter on Tuesday June 20the Binance trading platform has confirmed that it has proceeded with the implementation of lightning nodes on the Bitcoin network with the aim of offering its users BTC deposit and withdrawal services powered by Lightning technology in the more or less near future.
Officials of the largest exchange in the crypto ecosystem in terms of volume, however, pointed out that there was still work to be done on a technical level before being able to integrate the Bitcoin Lightning Network for deposits and withdrawals.
The Lightning Network is considered by many crypto watchers and analysts to be a Layer 2 specifically devoted to Bitcoin and its blockchain. It achieves this by setting up payment channels that perform off-chain transactions between users through reduced transaction fees generally amounting to a few euro cents.
Data from Glassnode also shows that Bitcoin’s Lightning Network fees vastly outperform traditional payment networks when it comes to transaction costs. Indeed, the cost of sending on the network is estimated at around 0.0029%i.e. close to 1000 times cheaper that the fees charged by behemoths like Visa Or MasterCard. The latter most often charge fees ranging from 2 to 3% per transaction, however, the use of traditional payment solutions can increase to 8% in some countries.
In the month of May 2023, Binance had previously declared its intention to integrate the Lightning Network to facilitate deposit and withdrawal activities for users. As a reminder, Binance had then temporarily paused BTC withdrawals during this same period citing general network congestion, a statement which had caused a wave of concern among users vis-à-vis the reserve funds of the trading platform.
Other historical crypto ecosystem trading platforms such as kraken And Bitfinex already offer services related to the Lightning network to their users. In addition, the general manager of Coinbase, Brian Armstrongofficially declared on Twitter last April that its platform would soon integrate the Lightning network, without however specifying a definitive date for this update.
Source : Binance