See More

Binance Integrates Lightning Network, Bitcoin Layer 2 Transactions Open

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Binance has successfully integrated Bitcoin Lightning Network, enabling faster and cheaper BTC transactions.
  • The integration comes after Binance had to suspend BTC trading twice due to network congestion and high transaction fees.
  • Alongside Binance's integration, Lightning Labs has released tools to incorporate Lightning Network with AI applications.
  • promo

Binance users will now be able to deposit and withdraw Bitcoin on the Lightning Network. The exchange announced on July 17 that it had integrated the scaling solution.

Binance has completed the integration of the Bitcoin Lightning Network. The exchange has also provided a guide on how to deposit and withdraw BTC on this network.

Binance Lightning Network Integration for Bitcoin

Binance’s support for the Lightning Network (LN) has been some time coming, as the exchange had suggested that it would do so earlier in the year. Users will be able to see an option called “BTC-Lightning” when depositing Bitcoin, in addition to the usual options of Bitcoin, BEP20, and SegWit, among others.

The Lightning Network is a layer 2 scaling solution for the Bitcoin blockchain, providing cheaper and faster transactions for the market’s biggest asset. It works by creating transaction channels off-chain, which are later added to the main chain.

Lightning Network is Bitcoin’s solution to its scalability woes. Check out our guide on this Layer 2 solution to learn more: Beginner’s Tutorial to Start Using the Lightning Network

Binance has been best with heavy transaction loads on other occasions. With Lightning Network, that problem should be alleviated. Other major exchanges have also supported Lightning Network in a bid to offer faster and cheaper transactions.

Notably, in May 2023, Binance suspended Bitcoin trading twice in 12 hours as the network grew increasingly congested. Transaction fees rose sharply as a result. Binance CEO Changpeng Zhao said that the exchange’s fee parameters had not anticipated the surge in the Bitcoin network’s gas fees.

Binance enabled Lightning Network withdrawals at the time while also raising withdrawal fees. The reason behind the surge in Bitcoin network activity was that Bitcoin Ordinals had peaked in popularity.

Lightning Labs Releases Tools to Integrate LN With AI

As Binance has been integrating Lightning Network, the team behind the scaling solution, Lightning Labs, has also released tools to integrate the solution with AI.

The team announced on July 6 that it had released developer tools,

“to build global, inclusive, and out-of-the-box cost effective LLM (Large Language Model) tooling which seamlessly incorporates Lightning and bitcoin.”

With this, AI applications will be able to handle Bitcoin payments both on-chain and on the Lightning Network.

It’s another step towards integrating AI with blockchain technology, an increasingly popular phenomenon.

Top crypto projects in the US | April 2024



In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...