Bitcoin
Binance Integrates Bitcoin Lightning Network
- Binance integrates Bitcoin Lightning Network to offer faster and cheaper transactions.
- The integration is a response to network congestion and high transaction fees.
- Lightning Labs’ launched new tools to enable AI to make payments, marking a significant step towards integrating AI with Bitcoin.
Binance has finally integrated the Bitcoin Lightning Network in response to base layer congestion and high fees caused by the popularity Ordinals inscriptions that were launched earlier this year. As the biggest cryptocurrency exchange, this move is expected to accelerate the development and use of the Lightning Network.
Cheaper and Faster Bitcoin Transactions at Scale
Binance has been late to integrating the Lightning Network, dragging its feet to embrace Bitcoin’s Layer 2 technology while many smaller exchanges and apps embraced it. However, since the launch of Ordinals inscriptions, which gave rise to NFTs on Bitcoin’s base layer, Binance was forced to suspended Bitcoin trading twice in 12 hours due to network congestion and high transaction costs . Perhaps having had a taste of what may be to come in the next bull run, Binance moved quickly to implement Lightning Network payments now, rather than lose revenue in busier periods as a result of increased downtime.
The Lightning Network is a game-changer for Bitcoin. As a layer 2 scaling solution, it offers cheaper and faster transactions by creating channels off-chain that are settled later on the base layer.
The Lightning Network can scale to millions of transactions per second— far greater than Visa/Mastercard networks – and costs mere fractions of a cent to make a transaction.
Binance is not alone in recognising the potential of the Lightning Network. Several other major exchanges and apps have also integrated this technology, including:
- Bitfinex
- Kraken
- OKX
- Cash App
- CoinCorner
- BitMex
- Relai App
Coinbase, the second biggest cryptocurrency exchange, has also committed to integrating the Bitcoin Lightning Network, but there has been no further news in the 3 months since CEO Brian Armstrong made the comments. 🤔
AI and Bitcoin: Money Native to the Internet
Lightning Labs, the team behind the Lightning Network, also released new tools that allow AI applications to manage Bitcoin payments on the Lightning Network, making it possible to integrate autonomous AI agents to manage budgets, make purchasing decisions, and push Bitcoin further towards becoming native money of the internet.