This is why Coinbase is integrating the Bitcoin Lightning Network

Coinbase has chosen Lightspark to integrate the Bitcoin Lightning Network.

This initiative aims to make the platform faster and cost-effective for Bitcoin transactions, which is an important step to improve efficiency.

Coinbase to integrate the Bitcoin Lightning Network

Bitcoin's Lightning Network, a Layer 2 payment protocol, reduces the burden on the blockchain and enables faster transactions than Bitcoin's main network. Lightspark, which specializes in providing access to the Lightning Network, is working with Coinbase to implement this technology.

With its software, Lightspark simplifies the integration and management of lightning networks for institutions. It offers a suite of tools designed for seamless transactions. The company boasts of an AI-driven engine that improves liquidity and transaction pipeline.

The partnership involves Coinbase using Lightspark's remote key signing feature. So, Coinbase manages Lightning's signature keys while Lightspark manages the node infrastructure. This setup is designed to scale effectively, providing reliable node service with versatile functionality through an intuitive interface.

This allows Coinbase to focus on improving the user experience without having to manage a large-scale Lightning Network implementation.

“Coinbase is committed to making the global financial system faster and more efficient. We are excited to partner with Lyspark to remove payment barriers and support faster and cheaper Bitcoin transactions for the Bitcoin Lightning Network,” said Shan Aggarwal, Coinbase VP of Corporate and Business Development.

The adoption of the Lightning Network by Coinbase is expected to have a significant impact on its operational efficiency and customer experience, particularly in terms of transaction speed and cost. It also marks a significant development of the Lightning Network, increasing its use and visibility in the cryptocurrency ecosystem.

Read more: Best Bitcoin Lightning Network Wallet in 2024

This integration will pave the way for new Bitcoin payment applications and accounting options, aligning with broader trends in cryptocurrency adoption and technology development.