Coinbase to Integrate the Bitcoin Lightning Network
- Coinbase will join other crypto exchanges like Binance, Bitfinex, and Kraken to offer Lightning Network services to users.
- Armstrong praised Bitcoin as the “most important asset in crypto”, which is an endorsement Bitcoin users will find appealing.
- Armstrong noted that the integration will take some time to be completed.
Coinbase CEO Brian Armstrong has confirmed that the crypto exchange will integrate the Bitcoin Lightning Network to enable faster payments. Armstrong shared the news in a post on X, adding that the company has formally assigned engineer Viktor Bunin to the project.
Armstrong wrote on Twitter,
The team did a great job digging into this, and we’ve made the decision to integrate Lightning. Bitcoin is the most important asset in crypto, and we’re excited to do our part to enable faster and cheaper Bitcoin transactions.
Bitcoin Lightning is a layer-2 blockchain that helps with faster transactions. The decision to incorporate the Lightning Network into Coinbase’s platform highlights the Lightning Network’s rising relevance as a scaling solution, which Armstrong initially rejected. Armstrong was a prominent supporter of initiatives to expand the Bitcoin block size, regularly voicing his disapproval to Bitcoin Core developers.
However, Armstrong’s recognition of Bitcoin as the “most important” crypto asset is a substantial validation of Bitcoin and its significance in the sector. It also aligns with Coinbase’s commitment to improving its users’ access to Bitcoin. Coinbase noted that lowering transaction fees and boosting transaction confirmation times will improve the overall experience for its users.
A large portion of the crypto community has welcomed this move, which is anticipated to greatly increase the use of Bitcoin as a medium of exchange. Interestingly, Coinbase’s stock rose by over 1% following news of the integration.
In addition, Cathie Wood, the head of ARK Invest, reacted to the move in a post on X. Wood noted that “Bitcoin is the world’s digital monetary system,” adding that “Coinbase’s integration with Lightning will give its 100 million users an on-ramp to faster and cheaper bitcoin transactions.”
However, Armstrong urged users to be patient, as the integration will require some time to wrap up. Coinbase will join other US exchanges like Kraken to adopt the Lightning network, saving users fees when the network is congested.