• Coinbase has officially integrated the Bitcoin Lightning Network, in partnership with Lightspark.
• The integration will facilitate instant, low-cost Bitcoin transfers for Coinbase users, offering the option to use the faster and more affordable Lightning Network or the traditional Bitcoin network.
• The Lightning Network integration is expected to lower the cost of global Bitcoin transactions by 20 times compared to traditional Bitcoin transfers on Coinbase.
Major cryptocurrency exchange Coinbase has announced the official rollout of its integration with the Bitcoin Lightning Network. This development will allow Coinbase users to make instant Bitcoin transactions at a fraction of the normal cost.
The Lightning Network Explained
The Bitcoin Lightning Network is a “second layer” payment protocol that operates on top of Bitcoin. It enables near-instant transactions between participating nodes, while significantly reducing costs on the Bitcoin network.
The Lightning Network was launched in 2018 to address Bitcoin’s scalability issues. By conducting transactions “off-chain”, it avoids fees and wait times associated with recording every single transaction directly on the Bitcoin blockchain.
Integration Details
Through its partnership with Lightning services provider Lightspark, Coinbase has connected its platform to the Lightning Network.
Now, Coinbase users can opt to send Bitcoin payments via Lightning for a fee of just a few satoshis (millionths of a bitcoin), and have them confirmed in seconds. Or, they can still use the original Bitcoin network, where fees are generally over $1 and confirmation takes 10+ minutes.
According to Coinbase, Lightning payments are around 20 times cheaper than standard Bitcoin transactions. This makes micropayments and frequent transfers much more feasible.
The integration furthers Coinbase’s goal of enabling “a one-second, one-cent global payment system”. Lightning is a key step toward faster blockchain payments going mainstream.
Impact on Bitcoin
Bitcoin has seen immense growth in 2022, recently hitting an all-time high above $73,000. Integrating the Lightning Network is likely to increase Bitcoin’s utility as a payment method.
By enabling fast, tiny Bitcoin transactions, Lightning expands the use cases for the cryptocurrency beyond just a “digital gold” store of value. This could help drive further adoption from both merchants and consumers.
Conclusion
The long-awaited Lightning integration gives Coinbase users a faster, cheaper way to transfer bitcoins. This is a big milestone for both Coinbase and Bitcoin, and could help push cryptocurrency payments toward the scale and speed needed for mainstream adoption.
