Coinbase integrates Bitcoin Lightning Network: What it means

Coinbase has integrated the Bitcoin Lightning Network, marking a significant shift towards faster and more economical BTC payments.

This integration specifically addresses the growing need for efficient financial transactions. In fact, it greatly reduces the time and cost associated with Bitcoin transfers.

Coinbase Activates Bitcoin Lightning Network.

Recently, transaction fees on the Bitcoin network have skyrocketed, rising to over $146 for medium-priority transactions and $170 for high-priority transactions. Although the situation is normal, with transaction fees of $1.63 for medium priority and $1.89 for high priority transactions, these fluctuations in Bitcoin transaction fees require an immediate solution.

In contrast, the newly adopted Lightning Network on Coinbase significantly reduces these costs and delays, with fees 1890 times lower than the average high-priority transaction. Therefore, the Lightning Network facilitates fast and cost-effective off-chain Bitcoin transfers, which has seen continuous growth and adoption.

With this integration, Coinbase users can now enjoy transactions directly from their accounts. This represents a significant improvement over the previous chain which could take hours.

Coinbase's partnership with Lightspark to implement this technology demonstrates its commitment to improving the Bitcoin network and reducing transaction fees and times. This initiative is part of Coinbase's broader strategy to use blockchain technology to transform traditional payments and provide faster and cheaper money supply.

This is especially important for underbanked and unbanked communities, as it helps eliminate the financial divide by reducing unnecessary costs and delays in routine banking.

“Until now, Bitcoin transfers on Coinbase were processed on-chain which could take anywhere from 10 minutes to 2 hours and could be expensive for users. The Lightning Network, built on top of Bitcoin, enables instant off-chain Bitcoin transfers.

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As a result, the integration of the Bitcoin Lightning Network represents a critical step in increasing the everyday use of cryptocurrency for millions of users worldwide.