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News

Binance Integrates Bitcoin Lightning Network To Allow Deposit And Withdraw

June 20, 2023 - Around 2 mins mins to read

Key Points:

  • Binance announced on Twitter that it is integrating the Bitcoin Lightning Network to allow users to deposit and withdraw funds.
  • For smooth operation, there is still a lot of technical work to be completed, and will be updated by Binance for users in the following reports.
  • Lightning Network is a second-layer protocol that works alongside Bitcoin to enhance speed, flexibility, and privacy and reduce costs.
Binance Integrates Bitcoin Lightning Network To Allow Deposit And Withdraw
Binance announced on Twitter that it is integrating the Bitcoin Lightning Network to allow users to deposit and withdraw funds. However, there is still a lot of technical work to be done, and an update will be made once the Lightning Network is fully integrated.

Lightning Network is a secondary layer protocol that runs on the Bitcoin blockchain for transaction size verification. It helps to reduce costs and traffic congestion on the base layer of the Bitcoin network.

Previously, Binance founder CZ (Changpeng Zhao) said in an AMA in early March that Binance is working on Lightning Network and may allow Lightning Network trading in small quantities first.

Although no specific date has been set, the team has investigated it in detail. CZ believes that every exchange must support the Lightning Network so that users can enjoy the benefits, such as cost savings through faster transactions.

Binance Integrates Bitcoin Lightning Network To Allow Deposit And Withdraw

The biggest advantage of the Lightning Network is its speed and affordability. Bitcoin network base layer fees and timeouts may be prohibitive. However, with the Lightning Network, you can send and receive small payments in a simple but impossible way on Bitcoin’s network. You can swap payments multiple times before closing the channel and completing a single transaction, all for a fee.

Since the Lightning Network is a secondary layer on top of the leading network, it still provides users with all of Bitcoin’s standard security protocols. Users can also switch between networks, according to their needs, accessing the Bitcoin network to complete large transactions and transfer back to Lightning for microtransactions. Ultimately, transactions associated with the Lightning Network are private, happen off-blockchain, and only record the overall outcome.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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