New Lightning Network Feature: Lightning-speed Bitcoin Deposits on Binance
Bitcoin (BTC) holders can now deposit their assets to the crypto exchange Binance using the Lightning Network, according to an announcement made by Binance.
Binance has successfully integrated the Lightning Network after previously setting up Lightning Network nodes, as announced last month.
Depositing bitcoin via the Lightning Network offers significant advantages over the traditional blockchain method. Transactions on the Lightning Network settle in under a minute, while regular bitcoin transactions can take up to 10 minutes per confirmation. Additionally, Lightning Network deposits cost only $0.04 as compared to the soaring fees, which spiked up to $30 in May for regular bitcoin deposits, as reported by ycharts.
Initially designed in 2016 to address transaction speed and network congestion issues, the Lightning Network has become renowned as "Bitcoin's second layer". Currently, the network boasts a capacity of $147 million and has 69,395 payment channels, according to 1ml data.
Binance joins the league of other prominent exchanges such as Bitfinex and Kraken that already offer Lightning Network deposits. Moreover, the anticipation for Coinbase's cooperation is growing as CEO Brian Armstrong recently hinted at future integration of the scaling solution.
