The trading platform’s management said that exchange users will now be able to deposit and withdraw bitcoins to Binance through Lightning Network channels. Plans to introduce the feature were announced back in May, when the exchange had to suspend BTC withdrawals twice due to a large volume of pending transactions on the network.
Lightning Network integration should make bitcoin transactions more efficient. BTC transactions will be executed within seconds, solving Bitcoin’s scalability issues. Users will have to pay a much lower fee compared to what is charged on the main Bitcoin network.
The integration of the Lightning Network by the Binance exchange was an important step towards mass adoption of the first cryptocurrency and improving the user experience. Despite friction with US regulators, the exchange aims to retain its status as a leading trading platform.
In May, Lightning Labs announced an update to Taproot Assets Protocol v 0.2. that will reduce the load on the Bitcoin network.