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- Brian Armstrong hints that crypto exchange Coinbase could incorporate Bitcoin Lightning Network.
- However, the date and extent of integration are yet to be disclosed.
Per Brian Armstrong, Coinbase may soon incorporate Bitcoin’s layer 2 scaling solution Lightning, hoping this integration would be beneficial. In his tweet on April 8, Armstrong praised Lightning and hinted at its integration. This tweet responded to the criticism that the exchange has ignored the network.
Bitcoin Lightning Network and Crypto Exchanges
Coinbase’s Chief Brian Armstrong has not revealed any details about the Lightning integration, including its extent and possible release date. However, many exchanges like Coinbase, once the world’s third largest and now bankrupt FTX, etc., were questioned for not integrating this feature, even though it facilitates cheaper BTC transactions than the current system.
While speaking to the media, David Coen, a Lightning enthusiast, said that if Brian Armstrong delivers what is promised, Coinbase will join OKX, Kraken and Bitfinex in the club of Lightning-integrated platforms.
Referring to the Lightning integration, Coen said it might go against the business plans for some trading platforms. Because they wish to integrate multiple altcoins to follow, the market trend and Lightning integration may not suit the model.
Armstrong once proposed a $100 prize to show the best examples of crypto usage in Africa, and media reporter Joseph Hall shared his video of using Bitcoin in Senegal. The fund was to be given away to people onboarding the Bitcoin network. At the same time, rumors surround that Brian has been testing the applications of the Lightning network.
Meanwhile, Coinbase has been quite active in the Ethereum ecosystem and is known to have launched Base on February 23. The new launch is an Ethereum layer-2 application-focused network powered by layer 2 Optimism.
Armstrong wrote an article titled “Scaling Bitcoin” about Bitcoin scaling solutions,” on January 2016. Arguing his support, he said that his company supports the scaling of Bitcoin and the steps taken in that direction but wishes to see the results a bit sooner.
A Brief About the Bitcoin Lightning Network
Bitcoin network was not designed to be a scalable model; it provided anonymous transaction facilities in a decentralized payment system. But when its user base exploded, the transaction time also slowed down. To solve this problem, the Lightning Network was proposed by Thaddeus Dryja and Joseph Poon and was supposed to solve the slow transaction problem.
A lightning Network is a transaction mechanism between two parties; these are faster, cheaper and easily confirmed compared to traditional Bitcoin blockchain. Moreover, the network could also be used to conduct off-chain transactions involving exchanges between cryptocurrencies.
The issues Bitcoin Lightning Network tried to solve were speed in transaction confirmation, considerable reduction in energy requirement, along with the introduction of smart contracts and multi-signature scripts. This network uses channels between participants to conduct simultaneous transactions without waiting for the main net to confirm every exchange.
During the opening and closing of a channel, the parties can move the funds as they please until the channel is closed. After the channel is closed, these transactions are sent to the mainnet for confirmation.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
