Coinbase is set to integrate the Lightning network, thanks to its partnership with software firm Lightspark. After almost two years of development, Coinbase customers will benefit from instant, cheaper transfers. According to the press release, the exchange would utilize Lightspark’s remote-key signing implementation to tap into a scalable, reliable, and fully optimized node infrastructure.
Additionally, the collaboration will allow seamless integration of the Lightning Network using Lightspark SDKs, APIs, and developer tools. On the other hand, Lightspark Predict, an AI-based smart engine, optimizes liquidity requirements and routing in real time to enhance transaction success rates and finality times across the network.
The partnership is deemed significant for multiple reasons. One, it is touted to significantly impact the overall network usage at a time when it’s most needed, given the rising price of Bitcoin and Bitcoin L1 fees. Secondly, Lightspark integrations will pave the way for additional payment use cases shortly by allowing more liquidity to be converted in and out of Bitcoin from fiat and cryptocurrencies.
Coinbase is committed to making the global financial system faster and more efficient,” said Shan Aggarwal, VP of Corporate & Business Development. “We’re excited to partner with Lightspark to eliminate payment barriers and enable faster and cheaper Bitcoin transactions through support for the Bitcoin Lightning Network.
Coinbase’s LN Saga
Lightning Network, a layer 2 solution for Bitcoin, emerged as a popular alternative to tackle BTC’s scalability issues and compete with newer cryptocurrencies offering swifter and more economical transactions. While notable crypto advocates like Michael Saylor and Jack Dorsey welcomed LN with open arms, Coinbase’s reluctance drew attention. Brian Armstrong, the CEO of Coinbase, defended the allegations and stated that they were evaluating the feasibility of integrating the Lightning Network.
As David Marcus, CEO of Lightspark, previously remarked, building on Lightning and Bitcoin is likely at least 5 times harder than building with other protocols. Therefore, the new announcement is likely to put detractors at ease.