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Bitcoin Lightning network

Coinbase Embraces Bitcoin Lightning: CEO Brian Armstrong Unveils New Features

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The Lightning Network is a solution that addresses Bitcoin’s scalability challenge, allowing it to compete with newer cryptocurrency projects promising faster and more cost-effective transactions. Coinbase, a cryptocurrency exchange, has officially confirmed its decision to incorporate the Lightning Network’s layer 2 payment protocol. This move comes as users increasingly seek faster and cheaper BTC transactions.

Bitcoin Lightning Network Integration

The Lightning Network (LN) was designed to tackle BTC’s scalability issues and compete with newer cryptocurrencies offering swifter and more economical transactions. Until recently, major cryptocurrency exchanges such as Coinbase and Binance had shown no interest in adopting this layer 2 solution. Many community members argued that integrating LN offered limited financial incentives to exchanges.

Contrary to the prevailing viewpoint, Brian Armstrong, the CEO of Coinbase, has affirmed the exchange’s choice to incorporate the Lightning Network. This determination follows a month of investigation by Viktor Bunin, a Protocol Specialist at Coinbase, into the practicality of integrating the Lightning Network. Over this period, notable figures in the crypto world, including Michael Saylor, the founder of MicroStrategy, and Jack Dorsey, the CEO of Square, openly raised doubts about Armstrong’s stance on the Lightning Network. Subsequent to Armstrong’s announcement, the cryptocurrency community celebrated this decision, as Coinbase’s integration of the Lightning Network will enable a broader audience to experience cost-effective and efficient microtransactions with Bitcoin.

Binance made an announcement on July 17, confirming the successful integration of the Lightning Network for BTC withdrawals and deposits. Binance users now have the choice to select “LIGHTNING” as an option when withdrawing or depositing BTC. Additional options available include BNB Smart Chain (BEP-20), BTC, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.

Binance’s Lightning Nodes Skyrocket 7x In A Week, Capacity Hits 77.73 BTC

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In an impressive surge of growth, Binance’s Bitcoin Lightning nodes have experienced rapid expansion. Over the course of the past week, the count of Binance Lightning Network public channels has remarkably escalated, soaring from 7 to 33. Alongside this remarkable growth, the capacity of these nodes has undergone a substantial augmentation, leaping from 36 BTC to an impressive 77.73 BTC.

Presently, the cumulative Bitcoin Lightning Network capacity across the entire network stands at a noteworthy 4,859.37 BTC. Significantly, Binance has emerged as a prominent player within this network, securing the 14th position in terms of Lightning Network capacity nodes, a fact supported by data from Amboss.

The community’s re­sponse to recent de­velopments shows that the Lightning Ne­twork’s total capacity remains below its previous pe­ak. Whether it will reach a capacity of 5,000 BTC in 2023 is unce­rtain. Some individuals have expressed concerns about a potential de­cline in traction for the Lightning Network.

However, the exchange’s increasing involveme­nt and influence in the Bitcoin Lightning Ne­twork highlight the constant evolution and expansion of the­ cryptocurrency landscape.

Binance Integration of Bitcoin into Lightning Network

This development follows the exchange’s recent announcement last month, wherein the cryptocurrency exchange successfully integrated Bitcoin into the Lightning Network (LN). This strategic move empowers Binance users to tap into the benefits of this scaling solution for both Bitcoin deposits and withdrawals. 

As an additional deposit option, use­rs can now select “BTC-

Lightning” alongside established choices such as Bitcoin, BEP20, SegWit, and others. By aligning itself with industry leaders like­ Kraken, OKX, Bitfinex, and River Financial, Binance­ joins the league of adopte­rs embracing the layer 2 scaling solution.

The suspension of BTC withdrawals in May initially drove Binance’s decision to integrate the Lightning Ne­twork. A backlog of pending transactions caused this suspe­nsion due to a significant incre­ase in BTC network gas fee­s.

In a bid to facilitate more cost-effective BTC deposits and withdrawals on its platform, Binance embarked on the operation of multiple nodes within the Lightning Network starting in June. With this remarkable progress, the exchange is setting the stage for enhanced accessibility and efficiency within the cryptocurrency trading landscape.

Bitcoin Lightning Home: Google, Amazon’s Tech Dome

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Bitcoin has reached a pivotal juncture in the realm of cryptocurrency, as the revelation unfolds that industry giants Amazon and Google are currently responsible for hosting a considerable segment of the nodes within the Bitcoin Lightning Network. This collaboration stands as a crucial landmark in the progression of blockchain technology, effectively reinforcing the widespread embrace of digital currencies.

According to recent data from local media, Amazon and Google collectively host a staggering 49% of the Bitcoin Lightning Network nodes. This surge in adoption by two of the most influential companies in the tech industry speaks volumes about the growing confidence in cryptocurrencies as a legitimate and viable financial asset.

Source: MemPool Space

The Bitcoin Lightning Network is a second-layer scaling solution that aims to alleviate the scalability issues faced by the original Bitcoin network. It facilitates faster and cheaper transactions by enabling off-chain transactions through payment channels. This network’s exponential growth is partly attributed to its capability to handle a higher volume of transactions efficiently.

Bitcoin Integration: Amazon and Google’s Strategic Move

Amazon and Google’s foray into hosting Bitcoin Lightning Network nodes is not only a significant stride for the cryptocurrency community but also a strategic move for these tech giants. With their robust cloud infrastructure, they possess the scalability and reliability required to host and manage such nodes effectively. This partnership not only benefits the cryptocurrency ecosystem but also demonstrates the adaptability of blockchain technology in diverse sectors.

This development could potentially have far-reaching consequences. The involvement of Amazon and Google lends a level of credibility to the cryptocurrency space that was previously elusive. It may pave the way for more institutional and corporate interest in cryptocurrencies, eventually leading to greater adoption and integration of digital assets into mainstream financial systems.

However, as with any technological advancement, challenges remain. The centralization concerns that have haunted the cryptocurrency space are not entirely alleviated with this partnership. While Amazon and Google’s involvement streamlines processes and enhances efficiency, it also raises questions about the decentralized nature of cryptocurrencies.

Nonetheless, the collaboration between these tech behemoths and the cryptocurrency sphere emphasizes the growing synergy between traditional tech infrastructure and the disruptive potential of blockchain technology. As more major players recognize and participate in the cryptocurrency ecosystem, the path to mass adoption becomes clearer.

Furthermore, the revelation that Amazon and Google are now hosting a significant proportion of the Bitcoin Lightning Network nodes underscores the maturation of the cryptocurrency industry. This alliance between two tech giants not only accelerates the efficiency of the Bitcoin network but also bridges the gap between conventional tech and blockchain innovation. While challenges persist, this partnership sets the stage for a more integrated and recognized future for cryptocurrencies.

Binance Pioneers Bitcoin Lightning Network Integration

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Binance, a prominent player in the cryptocurrency industry, has been at the forefront of multiple advancements in recent years. In a recent announcement, the exchange made a significant stride by successfully integrating Bitcoin (BTC) onto the Lightning Network.

In a blog post published on July 17, Binance unveiled an exciting development for its users. They can now take advantage of a layer-2 scaling solution to withdraw Bitcoin, thanks to the integration. Additionally, the exchange has designated specific Bitcoin deposit addresses exclusively for the Lightning Network, enabling users to conveniently access their Bitcoin deposit addresses through Binance.

The Lightning Network’s primary objective is to address the challenges of speed, affordability, and congestion in Bitcoin transactions. This is achieved by allowing users to establish off-chain transaction channels, reducing the load on the main blockchain.

Back in May 2023, Binance’s CEO, Changpeng Zhao, hinted at the upcoming integration. During that time, the exchange temporarily suspended Bitcoin withdrawals due to a surge in transaction volumes caused by heightened interest in cryptocurrency investments. However, after successfully resolving the issue, Binance adjusted its fees and assured users that they were actively working on enabling BTC Lightning Network withdrawals to prevent similar incidents in the future.

Shortly after users noticed the exchange’s involvement in Lightning Network transactions, the exchange officially confirmed on June 20 that they were actively working towards onboarding the Lightning Network.

Surge in Bitcoin Capacity Expected With Binance’s Involvement

Bitcoin Lightning Capacity refers to the total capacity held by all nodes within the Lightning Network, providing an overview of the network’s overall accessibility.

Bitcoin Lightning Capacity

Examining the chart depicting Bitcoin’s lightning capacity growth over the past few years, we observe a consistent upward trend. However, this trend experienced a temporary disruption in the recent month. With Binance’s entry into the Lightning Network arena, it is expected that the total amount of Bitcoin held by Lightning Network nodes will see a substantial increase, resulting in a surge in capacity. At the time of writing, Bitcoin was trading at $30,315, experiencing a 0.39% daily rise.

Bitcoin Lightning Network Strike Enabling Low-Cost Payments To Africa

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The world’s leading Bitcoin Lightning Network-based digital payment system, Strike, has announced a partnership with Bitnob, an African payments platform, according to a press release published by Businesswire on December 6th.

Through the Strike “Send Globally” feature, this cooperation intends to make rapid, inexpensive transactions to Africa. Starting on December 6th, it will be accessible to all of its customers in the United States, with the first coverage for Ghana, Kenya, and Nigeria.

Founder and CEO of Strike, Jack Mallers, said:

High fees, slow settlement, and lack of innovation in cross-border payments have negatively impacted the developing world.

He added that Payments firms find it difficult to operate in Africa due to the high costs of sending money in and out of the continent and the suspension of services by long-standing providers. 

As a result, individuals are unable to send money to their loved ones back home. People who use Strike can quickly and conveniently move U.S. money across international borders.

Besides this, one of the many reasons for Africans to transition to cryptocurrency is the economic instability in most African countries. A company like Bitcoin has no central location, so it isn’t affected by the inflation rates of a single country – making people from those nations feel safer about their money. Furthermore, payments are simpler across borders with Bitcoin.

According to KuCoin, a crypto exchange, transactions climbed by up to 2,670% in 2022. The steep inflow is an extraordinary growth tendency that is related to the low levels previously seen in earlier times. African cryptocurrency transactions make up about 2.8% of total world volumes.

Bitcoin Lightning Network’s New Feature

According to the press release, a Strike user may immediately send money to Nigeria, Ghana, and Kenya with no transaction costs by using Send Globally. Direct deposits into a recipient’s bank, mobile money, or Bitnob account occur after payments are instantaneously translated into naira, cedi, or shillings.

Additionally, including in nations with fewer options for cross-border money transfers, this feature enhances the speed, affordability, and simplicity of payments to Africa.

Bernard Parah, founder and CEO of Bitnob argued that the present financial system is not built up to provide fair access for individuals and organizations from Africa:

What we have built reduces the pressure on our financial institutions in sourcing USD liquidity. People can now easily exchange value from the U.S. to people in Africa in the cheapest way possible. 

Moreover, through partnerships like Chipper Cash, one of Africa’s leading peer-to-peer and cross-border payment service providers, the Bitcoin Lightning Network Strike will continue to provide payment services across the continent.

Related Reading | BNB Chain’s dApps Breaks New Ground: Report

Here’s How Bitcoin Transactions Are Supported On Cash App Through Lightning Network

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The first cryptocurrency ever created, Bitcoin [BTC], went on to become more of a store of value than a payment method. However, it became much simpler to use Bitcoin as a payment method after the Lightning Network was included. The Jack Dorsey-developed Cash App has consistently supported Bitcoin throughout. The platform then continued to make transmitting and receiving the asset easier.

In February, the company made its initial announcement about integrating Lightning Network with Cash App. The platform has since stated how BTC can be sent or received via QR codes or URLs. This statement was made on Twitter by Michael Rihani, the product lead at Cash App.

Rihani added that only Cash App users in the US were presently able to use the feature. However, using the service would not be permitted for New York State citizens.

But for some users, this wasn’t functioning. Rihani confirmed that both iOS and Android users could access this upgrade. The most recent version of the software should be installed or updated, users were advised. In addition, he mentioned that users will also transfer BTC to other wallets. He further tweeted,

“Cash App now supports both send and receive over lightning. As long as the other wallet supports LN, you should be good.”

Due to the fact that Cash App initially only permitted users to send Lightning transactions and not receive them, this most recent update is thought to be highly important.

October: The Month Of Peaks For Bitcoin Lightning Network

The overall capacity that all Lightning Network nodes have is indicated by the term “Bitcoin Lightning Network capacity.” The capacity of the Bitcoin lightning network has been rising steadily. The achievement was made while the value of Bitcoin was falling. When BTC was attempting a rebound in the middle of this year, the capacity acceleration began. The lightning network continued to expand, supporting rising usage even when BTC’s price did not improve.

The capacity of Bitcoin Lightning has been at its highest point throughout October, as shown in the chart below.

Source

At the time of writing, BTC was priced at $19,503.23 with a rise of 0.03%, over the last 24 hours.

Bitcoin lightning infrastructure to be built by Block

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The TBD business unit of Jack Dorsey’s Block team has declared plans to construct a bitcoin lightning infrastructure. The Block’s product designer engineer announced that he will be departing the wallet team to join a specialized lightning infrastructure team. He announced,

“Our goal is to not only build the tools and infrastructure we need for our products but also to be additive to the Lightning Network ecosystem on the whole.”

Nick Slaney made the announcement in a Twitter thread. He went on to discuss the lightning network and how it enables worldwide payments to be made cheaply and quickly.

The company stated that, like all other Bitcoin-focused Block products, the plan to construct a lighting network architecture will include community plans and comments, as well as ideas from other bright people in the crypto sector.

“We’ll be partnering with, and building off the great work that cashapp and spiral have already done with lightning. Our goal is to not only build the tools and infrastructure we need for our products but also to be additive to the lightning network ecosystem on the whole.”

On Saturday, TBD, the commercial wing of Jack Dorsey’s NASDAQ-listed Block, unveiled Web 5, a new platform. The platform’s purpose was to build a decentralized web that puts you in charge of your data and identity, similar to the Bitcoin blockchain.

Web 5 will be constructed using blockchain technology components such as decentralized identifiers (DIDs), decentralized web nodes (DWN), and self-sovereign identity services, according to the website (SISs). DIDs provide a verified digital identity, DWNs provide a route for receiving and recording data, and SISs provides users with complete control over their accounts and personal data.

Doresy and Jay-Z’s Bitcoin Academy

Jay-Z and Jack Dorsey collaborated to open a Bitcoin Academy in Jay-hometown Z’s of Brooklyn, New York, to teach cryptocurrency classes. The new academy will give lessons to the Marcy Houses community to teach them about bitcoin.

Classes on “What is Money?” and “What is Blockchain?” will be offered at the Bitcoin academy.
The program, which is open to everyone, will also include a “crypto kids camp,” in which attendees will be given a mobile hotspot as well as a small amount of BTC to practice with.

In addition, Jay-Z and Dorsey have invested in a number of blockchain firms, including Alchemy, and have supported a bitcoin development initiative in Africa and India. Both of them are supporting the project out of their own pockets while also encouraging various crypto-related nonprofits to contribute.

Bitcoin’s LN integrates with Block-owned Cash App for US users

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Leading payment service provider, Cash App announced bringing Bitcoin’s Lightning Network into its fold thus enabling U.S. users to send bitcoin to anyone in the world. Although an official announcement from Cash App is yet to come, the payment app revealed that the rollout is expected to be complete over the coming weeks, targeting all U.S. Cash App customers.

The integration once activated will allow Cash App users to be able to send bitcoin anywhere in the world to any external compatible wallet, including those for family or friends or a self-managed wallet, for example, Chivo Wallet, BlueWallet, or Muun Wallet. In addition to that, customers will also be able to send bitcoin to any merchant that accepts Lightning Network payments, with zero fees.

As per sources, the Lightning Network’s support in Cash App would help empower the burgeoning creator economy, as fans could send BTC to express their support for an individual creator or cause if they accepted Lightning payments. Explaining the benefits, Cash App noted that

“Typical Bitcoin network transactions can take some time to process and see higher fees. But the Lightning Network will still benefit from the blockchain’s technology and decentralization, as the transactions taking place on the network are later consolidated and recorded to the main Bitcoin blockchain.”

Bitcoin’s LN growing adoption

Promoting Bitcoin adoption, Cash App previously offered a service that allowed users to gift BTC and stocks over the holiday season. It enabled users to send a minimum of $1 worth of BTC without the requirement to own the assets beforehand. However, Cash App is not the only one adding the feature.

On 18th January 2022, Argentina-based mobile wallet firm Belo announced that it has joined hands with infrastructure provider OpenNode to facilitate Lightning Network to provide access to its users. Julie Landrum, OpenNode’s Head of Growth, stated that the deal allows millions of people in South America to conduct faster Bitcoin transactions.

With its layer-2 solution, the LN aims to offer tremendous scalability and cheap transaction costs. It operates by taking transactions away from the main chain and placing them into peer-to-peer “payment channels” between two parties, such as a buyer and a coffee shop. Once the channel is established, it claims to handle an infinite number of transactions in real-time.