On June 20, crypto exchange Binance announced its integration of Lightning nodes on the Bitcoin network, aiming to provide Lightning-based deposit and withdrawal services to its users. The exchange acknowledged that there is still ongoing technical work required before Lightning is fully integrated, but assured users of regular updates.
Quick facts:
- Binance announces the integration of Lightning nodes to enhance Bitcoin efficiency, enabling Lightning-based deposit and withdrawal services.
- Strike expands its cross-border payment service, utilizing Bitcoin’s Lightning Network, to include Mexico.
- Despite concerns around centralization and trust assumptions, Lightning Network’s capacity continues to grow.
The Lightning network acts as a secondary layer on top of the Bitcoin blockchain, facilitating faster transaction times and reducing network congestion. By establishing payment channels for off-chain transactions, users can enjoy quick and low-cost transfers.
“Binance is working to integrate the Bitcoin Lightning Network for deposits and withdrawals. However, there’s still more tech work to be done. We’ll update once Lightning is fully integrated,” the exchange stated on Twitter.
During the month of May, Binance announced its intention to incorporate the Lightning network into its operations, aiming to enhance the deposit and withdrawal processes for its users. This decision came after Binance temporarily halted Bitcoin withdrawals, citing network congestion as the reason. However, this move raised apprehensions among users regarding the exchange’s reserve funds.
By integrating the Lightning Network, Binance joins the group of exchanges, including Kraken, OKX, River Financial and BitFinex, that have already incorporated the Lightning node. In line with Coinbase CEO Brian Armstrong’s tweet back in April, where he mentioned the exchange’s intention to provide the Lightning Network to users in the future, Binance now takes a step forward in boosting Bitcoin efficiency through this integration.
Strike Broadens Cross-Border Payments via Lightning Network to Include Mexico
Strike, a payments company that utilizes Bitcoin’s Lightning Network to offer a quicker, more cost-effective, and inclusive alternative to conventional money transfer services, has broadened its “Send Globally” offering to include Mexico.
The service allows users to conveniently send funds across borders, offering a faster, cheaper, and more accessible alternative to traditional money transfer providers.
According to Strike’s CEO and founder, Jack Mallers, the company is dedicated to promoting financial stability and equal access to improved payment options for all individuals.
In addition, Twitter uses Strike to allow users from El Salvador and the United States (excluding Hawaii and New York) to give tips in BTC using the Lightning Network.
Since its introduction in December 2022, Strike’s Send Globally service has experienced significant growth and is now available in more than twelve countries. These countries include the Philippines, Vietnam, and Nigeria, all of which are prominent players in the global cross-border market, ranking among the top ten largest markets in this sector.
Despite the decline in Bitcoin’s price over the last 18 months, the capacity of the Lightning Network has been consistently increasing. According to data from Glassnode, the current capacity of the Lightning Network is approximately 5,400 BTC ($145 million).
Despite the potential benefits of Lightning payment channels in reducing the expenses associated with BTC transfers, the technology has encountered difficulties in gaining widespread adoption. One of the main concerns revolves around the risks of centralization and the introduction of additional trust assumptions. While Lightning holds the promise of significantly lowering transaction costs, its uptake and usage have been limited thus far.
