Coinbase Integrates the Bitcoin Lightning Network
The integration process was not without its challenges, chiefly in ensuring that the Coinbase team fully grasped the intricacies of the Lightning Network's operation
April 30, 2024 05:48 PM
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TL;DR Coinbase announces the integration of the Bitcoin Lightning Network, promising faster and more efficient transactions. This groundbreaking move, facilitated by Lightspark, is set to revolutionize how users interact with Bitcoin, offering an alternative to the mainnet for transactions.
Top cryptocurrency exchange Coinbase is making significant strides in enhancing Bitcoin transactions by integrating support for the Bitcoin Lightning Network.
Now available on its mobile and desktop platforms, Coinbase offers its users a choice between the traditional Bitcoin mainnet and the faster, more efficient Lightning Network for sending Bitcoin.
Launched in 2018, the Lightning Network is a second-layer protocol designed to alleviate congestion on the Bitcoin blockchain by enabling faster and cheaper transactions.
This integration has been made possible through a collaboration with Los Angeles-based Lightspark, a company specializing in enterprise-facing Lightning Network products.
"We opted for a partner with a proven track record of working with enterprises on large-scale Lightning deployments, and Lightspark met our high bar for security," said Viktor Bunin, protocol specialist at Coinbase.
The integration process was challenging, chiefly because it required ensuring that the Coinbase team fully grasped the intricacies of the Lightning Network's operation, particularly regarding channel management and fund movement.
Despite these hurdles, Lightspark was chosen for its non-custodial approach and its vision for the future of the Lightning ecosystem.
This move is not just about enhancing Bitcoin transactions but advancing the broader crypto adoption and increasing economic freedom.
However, the option must be available to Canadian and New York residents. Amidst this innovation, Coinbase continues to navigate regulatory challenges, including an ongoing legal battle with the SEC.
Coinbase is actively participating in political campaigns through a SuperPAC to sway Congress in favor of crypto, highlighting its commitment to the crypto industry's growth and regulatory acceptance.