Coinbase has integrated the Bitcoin Lightning Network, marking a pivotal shift towards faster and more economical BTC payments.
This integration caters specifically to the growing demand for efficient financial transactions. Indeed, it significantly reduces the time and cost associated with Bitcoin transfers.
Coinbase Enables Bitcoin Lightning Network
Recently, transaction fees on the Bitcoin network surged to record levels, with fees for medium-priority transactions exceeding $146 and those for high-priority transactions climbing to $170. Although the situation has normalized, with transaction fees of $1.63 for medium-priority and $1.89 for high-priority transactions, these fluctuations in Bitcoin transaction fees call for an immediate solution.
In contrast, the newly adopted Lightning Network on Coinbase drastically cuts these expenses and delays, charging fees 1890 times less than the average high-priority transactions. Therefore, the Lightning Network facilitates instant and cost-effective off-chain Bitcoin transfers, which has seen consistent growth and adoption.
With this integration, Coinbase users can now enjoy immediate transactions directly from their accounts. This represents a significant upgrade from the previous on-chain process that could take hours.
Coinbase’s collaboration with Lightspark to implement this technology reflects its commitment to enhancing the Bitcoin network and reducing transaction fees and times. This initiative is part of Coinbase’s broader strategy to revolutionize traditional payments using blockchain technology, offering quicker and cheaper access to funds.
This is particularly beneficial for underbanked and unbanked communities, helping bridge the financial divide by minimizing unnecessary costs and delays involved in conventional banking.
“Until now, Bitcoin transfers on Coinbase were processed onchain which could take anywhere from 10 minutes to 2 hours and could be costly for users. The Lightning Network, built on top of Bitcoin, enables instant off-chain bitcoin transfers at a fraction of the cost,” Coinbase said.
Read more: Coinbase Review 2024: The Best Crypto Exchange for Beginners?
As a result, the integration of the Bitcoin Lightning Network represents a crucial step forward in increasing the daily utility of cryptocurrency for millions of users worldwide.
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