Binance, the world’s leading cryptocurrency exchange, has successfully integrated the Lightning Network, a popular scaling solution built on top of the Bitcoin blockchain. This integration allows Binance users to utilize the Layer-2 scaling solution for faster and more cost-effective Bitcoin withdrawals and deposits by selecting the “BTC-Lightning” network option.
The decision to incorporate the Lightning Network comes after Binance announced its plan to integrate Lightning nodes into its infrastructure. The move was prompted by a period of increased congestion on the Bitcoin network, which forced Binance to temporarily halt BTC withdrawals. At the time, the Bitcoin mempool had over 420,000 unconfirmed transactions, surpassing the levels seen during the 2021 bull run.
According to Binance, the congestion and subsequent rise in transaction fees largely attributed to the introduction of the BRC-20 token standard on the Bitcoin Ordinals protocol. To mitigate such issues in the future, Binance adjusted its fees and took proactive measures, including enabling BTC Lightning Network withdrawals.
Binance joins other major cryptocurrency exchanges like Kraken, OKX, and Bitfinex in supporting the Lightning Network, further expanding the adoption and usability of this scaling solution within the crypto industry. By leveraging the Lightning Network, Binance aims to enhance transaction efficiency and reduce costs for its users, ensuring a smoother and more accessible experience when dealing with Bitcoin on its platform.