- Cryptocurrency exchange platform OKEx announced its new integration with blockchain’s payment protocol Lightning Network
- This will lead to accelerated transaction time for numerous digital assets including Bitcoin
- It will also reduce processing fees charged on each cryptocurrency trade
OKEx has announced its incorporation of Lightning Network which will lead to faster transaction speed and lower the processing fees incurred on each cryptocurrency exchange.
Lightning’s Capabilities Will Now Be Accessible On OKEx
OKEx is a cryptocurrency exchange facilitator which allows the trade of various digital assets on its platform. On February 2, the exchange announced its new amalgamation with Lightning Network through a tweet. This will make the platform a participant note in Lightning’s technology.
This incorporation will permit OKEx clients to choose the Lightning Network alternative while storing and withdrawing Bitcoin (BTC). As a result, it will diminish exchange expenses and allow accelerated transactions to take place.
The Lightning Network is a second-layer scaling explication and installment protocol which functions on top of the Bitcoin blockchain. The convention was proposed in 2015 by Joseph Poon and Thaddeus Dryja. It was developed considering a solution to tackle Bitcoin’s adaptability issue. As per information from crypto analysis site BitInfoCharts, the normal Bitcoin exchange fees added up to more than $15 on February 1.
The Lightning Network is not a blockchain itself. Instead, it is an additional layer. The protocol was initially utilized to facilitate small or even micro BTC exchanges. In order to address this issue, Lightning Labs launched channels referred to as “Wumbo” in August 2020. This was done with the intention to make it feasible to service considerably larger transactions and simultaneously lower the fees charged on-chain.These channels are named as such on the grounds that they are bigger than the 0.1677 BTC ($5,800) limit.
Increasing Adoption of Lightning Network Across Numerous Exchanges
Bitstamp, a crypto exchange platform based in Europe, launched its primary Lightning Network node to enhance the network’s potential in July 2019. Another platform called Bitfinex is the leading digital asset exchange to have integrated Lightning’s payment technology in December 2019. The exchange announced its incorporation of the Wumbo channels, which will permit the storage and drawing out facility of larger amounts of Bitcoin, in September 2020.
Amid Lightning Labs expanding the Lightning Network’s capabilities, more crypto exchanges have moved to integrate the protocol in recent months. In December 2020, major United States-based crypto exchange Kraken announced that it will include the Bitcoin Lightning Network in 2021. OKCoin also recently announced its plans to integrate the network in the first quarter of 2021.
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