Binance users will now be able to deposit and withdraw Bitcoin on the Lightning Network. The exchange announced on July 17 that it had integrated the scaling solution.
Binance has completed the integration of the Bitcoin Lightning Network. The exchange has also provided a guide on how to deposit and withdraw BTC on this network.
Binance Lightning Network Integration for Bitcoin
Binance’s support for the Lightning Network (LN) has been some time coming, as the exchange had suggested that it would do so earlier in the year. Users will be able to see an option called “BTC-Lightning” when depositing Bitcoin, in addition to the usual options of Bitcoin, BEP20, and SegWit, among others.
The Lightning Network is a layer 2 scaling solution for the Bitcoin blockchain, providing cheaper and faster transactions for the market’s biggest asset. It works by creating transaction channels off-chain, which are later added to the main chain.
Binance has been best with heavy transaction loads on other occasions. With Lightning Network, that problem should be alleviated. Other major exchanges have also supported Lightning Network in a bid to offer faster and cheaper transactions.
Notably, in May 2023, Binance suspended Bitcoin trading twice in 12 hours as the network grew increasingly congested. Transaction fees rose sharply as a result. Binance CEO Changpeng Zhao said that the exchange’s fee parameters had not anticipated the surge in the Bitcoin network’s gas fees.
Binance enabled Lightning Network withdrawals at the time while also raising withdrawal fees. The reason behind the surge in Bitcoin network activity was that Bitcoin Ordinals had peaked in popularity.
As Binance has been integrating Lightning Network, the team behind the scaling solution, Lightning Labs, has also released tools to integrate the solution with AI.
The team announced on July 6 that it had released developer tools,
“to build global, inclusive, and out-of-the-box cost effective LLM (Large Language Model) tooling which seamlessly incorporates Lightning and bitcoin.”
With this, AI applications will be able to handle Bitcoin payments both on-chain and on the Lightning Network.
It’s another step towards integrating AI with blockchain technology, an increasingly popular phenomenon.
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In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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