Binance, the largest cryptocurrency exchange globally, has announced its initiatives to promote the widespread use of the Bitcoin Lightning Network. This network aims to enhance the speed and affordability of Bitcoin (BTC) transactions.
In a recent tweet on Tuesday, Binance stated that it is actively working on integrating the Bitcoin Lightning Network for both deposits and withdrawals.
The exchange decided in response to its previous commitment in early May to integrate the Bitcoin Lightning Network. This move followed the exchange’s encounter with difficulties caused by the many pending transactions.
Binance had to temporarily suspend withdrawals because they had a significant backlog of pending requests. Binance acknowledged that observant users had noticed their recently implemented lightning nodes.
Some eagle-eyed users spotted our new lightning nodes recently. Yes – that's us!
However, there's still more tech work to be done. We'll update once Lightning is fully integrated. https://t.co/N0oN8561sN
— Binance (@binance) June 20, 2023
They confirmed their identity, stating, ‘Yes, that’s us!’ Furthermore, they mentioned additional technical tasks for Lightning integration. They will assure users of updates once we finalize the process.
The Lightning Network, constructed upon Bitcoin, is a layer-2 protocol designed to tackle concerns related to scalability. Establishing a network of payment channels among participants enables swifter and more economical transactions.
There is no maximum limit to the transaction per second (TPS) capacity of the Bitcoin Lightning Network. A single channel within the network can handle more than 250 TPS. They can add a limitless quantity of media to the network.
Essentially, the Lightning Network enables users to participate in numerous off-chain transactions. The Bitcoin blockchain records only the starting and ending wallet balances.
By adopting this approach, the network experiences a substantial boost in throughput while reducing transaction fees. Furthermore, it offers users with additional security and anonymity.
Strike Expands Lightning Network Payments To Mexico
Strike, a payments company, utilizes Bitcoin’s Lightning Network for quicker, cost-effective, accessible transfers. The company has expanded its “Send Globally” feature to Mexico, offering enhanced options.
The service lets users conveniently send funds across international borders, offering a practical solution for cross-border transactions. Strike’s CEO and creator, Jack Mallers, believes everyone should have equal access to better payment and financial security.
They are thrilled to introduce quick and affordable international payments through the Lightning Network in Mexico. This allows more individuals to send money back to their home country.
Strike’s Send Globally, introduced in December 2022, has extended its reach to more than twelve nations, encompassing the Philippines, Vietnam, and Nigeria, which rank among the ten largest cross-border markets.
It is essential to mention that Twitter utilizes Strike to enable users to send and receive Bitcoin “tips” through the Lightning Network. Nonetheless, the Lightning Network for Bitcoin has not yet gained significant adoption among the general public.
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DefiLlama’s data reveals that the liquidity of the Lightning Network constitutes less than 0.5% of the total Ether locked in DeFi contracts.