2024-05-01
Coinbase has made an announcement regarding the integration of the Bitcoin Lightning Network, which will enable faster and more cost-effective Bitcoin transactions.
As stated in Coinbase's announcement, starting from Tuesday, users will be able to access this feature on both mobile and desktop platforms, allowing them to send Bitcoin using either the traditional Bitcoin network or the Lightning Network.
Established in 2018, the Lightning Network is a layer 2 protocol that facilitates transactions off the main Bitcoin blockchain.
It enhances transaction speed and reduces costs. Coinbase's decision to adopt this technology was supported by Lightspark, a Los Angeles-based company specializing in enterprise-grade Lightning Network services, founded in 2022.
Viktor Bunin, a protocol specialist and Lightning integration lead at Coinbase, mentioned that customers will be able to interact with Lightning through the retail exchange, which operates in a custodial manner similar to how customers custody Bitcoin and other assets with Coinbase.
Customers will not need to run a node, manage a channel, or be concerned about liquidity.
Bunin explained the reasons behind choosing Lightspark, highlighting their extensive experience in implementing large-scale Lightning solutions for businesses and their commitment to stringent security standards.
He also emphasized the importance of Lightspark's non-custodial services and their dedication to developing the Lightning ecosystem.
The integration process began in the fall, during which Coinbase's team underwent thorough education on the intricacies of the Lightning Network.
It was crucial for all team members involved in the project to fully understand how the Lightning Network functions and its implications for their specific roles.
However, it is important to note that this new service is currently not available to residents of Canada and New York.
This limitation is a result of ongoing regulatory challenges, including a legal dispute with the U.S. SEC over allegations of facilitating trades in unregistered securities, which gained prominence in 2022.
Coinbase has also been actively involved in political matters, supporting campaigns that have a positive impact on crypto regulation.
In December, a SuperPAC backed by Coinbase launched a substantial advertising campaign targeting U.S. Senate candidate Katie Porter, signifying the exchange's strategic engagement in politics.
By adopting the Lightning Network, Coinbase is taking a step towards improving the scalability of Bitcoin transactions, aligning with its objective of increasing crypto adoption and promoting economic freedom.
