Binance started launching nodes in Bitcoin Lightning Network

The largest cryptocurrency exchange, Binance, has launched nodes on the Bitcoin Lightning Network, a second-tier payment solution for the world’s largest cryptocurrency. This is seen as a key step toward enabling deposits and withdrawals on the Lightning Network-based platform. Binance confirmed the availability of the new Lightning nodes in a June 20 tweet, but noted that additional technical work needed to be done before the integration could be completed.

The Lightning Network allows users to create payment channels and conduct off-chain transactions with minimal fees and fast confirmation times. Channels can be closed and settled on the Bitcoin blockchain when needed. This reduces stress and congestion on the main network, especially during periods of high demand. Binance faced such a situation on May 7, when a spike in BRC-20 transactions caused by the popularity of memcoins led to delays and bottlenecks in the Bitcoin network. Binance announced its intention to integrate the Lightning Network to solve this problem in a May 7 tweet.