Coinbase is set to integrate the Bitcoin Lightning Network (LN) into its platform, according to the exchange’s CEO, Brian Armstrong. This move comes as part of Coinbase’s efforts to drive cryptocurrency payments worldwide. By implementing LN, Coinbase aims to improve the user experience, solve scalability issues, and potentially increase the adoption of Bitcoin.
The LN is a layer 2 payment protocol built on Bitcoin. It acts as a scaling solution that enables faster and cheaper transactions between nodes, addressing the scalability challenges of Bitcoin. As the most popular layer 2 solution for Bitcoin, the integration of LN into Coinbase’s platform has been a topic of discussion within the crypto community.
Plans for Integration
Responding to a tweet from Twitter co-founder Jack, who questioned Coinbase’s lack of integration of LN, Armstrong stated that Coinbase is actively exploring how to add Lightning. He acknowledged the complexity of the integration but emphasized its worthiness, expressing his support for Bitcoin payments to take off.
While Armstrong did not provide a specific timeline for the integration, his comments indicate Coinbase’s intention to join other top exchanges such as Binance, Bitfinex, Kraken, and OKX, which have already implemented LN on their platforms.
The integration of LN into Coinbase’s platform is expected to bring several benefits. By enabling faster and cheaper transactions, LN will significantly improve the user experience for Coinbase’s customers. Moreover, by addressing the scalability issues of Bitcoin, LN has the potential to drive broader adoption of the flagship digital asset.
LN adoption has been growing steadily throughout the year. Recent partnerships, such as the collaboration between Bitcoin Lightning infrastructure provider Voltage and Google Cloud to increase hosting capacity and global presence, demonstrate the increasing interest in LN.
Additionally, data from Glassnode shows that the total value of assets locked on the LN network reached over 5,000 BTC in early July, indicating significant growth compared to the 4,000 BTC at the beginning of the year. While there has been a slight decrease in the total locked value in recent weeks, with it currently standing at 4,706 BTC, the overall trend suggests growing confidence in LN.
Coinbase’s CEO, Brian Armstrong, has confirmed that the exchange is actively working on integrating the Bitcoin Lightning Network into its platform. The integration aims to improve the user experience, solve scalability challenges, and drive broader adoption of Bitcoin. While Coinbase has yet to provide a specific timeline for the integration, the move aligns with the growing trend of cryptocurrency exchanges implementing LN. As LN adoption continues to increase and partnerships with major players like Google Cloud emerge, the future looks promising for the Lightning Network and its potential to revolutionize cryptocurrency payments.