Coinbase embraces Bitcoin Lightning network to speed up transactions Coinbase embraces Bitcoin Lightning network to speed up transactions
Coinbase joins a list of notable crypto trading platforms like Binance that has integrated the solution.
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Updated: Apr. 3, 2024 at 7:28 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
US-based crypto exchange Coinbase is finally integrating Bitcoin Lightning network after several promises by the exchange CEO Brian Armstrong.
In an April 3 statement, Lightspark, a lightning network-based payment infrastructure provider, revealed that it was selected by the crypto exchange to facilitate the integration of Bitcoin Lightning Network.
Under this partnership, Coinbase will leverage Lightspark’s remote-key signing implementation. This would allow Coinbase to retain control of the Lightning signing keys while Lightspark will manage the Lightning node infrastructure. This shared responsibility model ensures efficient operations without burdening Coinbase’s team with managing a large-scale implementation.
Lightspark has recorded notable success in simplifying Lightning node management. Its products, including SDKs, APIs, and developer tools, offer seamless integration with the Lightning Network. Moreover, its AI-based smart engine, Lightspark Predict, optimizes liquidity requirements in real-time to maximize transaction success rates.
Lightning integration benefits
The integration offers Coinbase several advantages, including allowing the exchange to leverage Lightspark’s node infrastructure while freeing its team to focus on customer-centric initiatives.
Moreover, the collaboration will positively impact the Bitcoin network, particularly during increased transaction fees, by enhancing scalability and transaction efficiency. It also lays the groundwork for future use cases by providing liquidity to the Bitcoin network.
Shan Aggarwal, Coinbase’s VP of Corporate & Business Development, said:
“Weโre excited to partner with Lightspark to eliminate payment barriers and enable faster and cheaper Bitcoin transactions through support for the Bitcoin Lightning Network.”
During the past year, Coinbase has faced increased questions from several crypto community members over its failure to integrate the scaling solution, especially after major rivals like Binance integrated the technology.
In response, Armstrong pledged that Coinbase would also incorporate the Lightning Network while revealing the firm’s efforts.
This integration is pivotal for BTC, given the increasing demand for streamlined Bitcoin transactions amidst surging prices.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.