Coinbase Adopts Bitcoin Lightning Network for Faster Transactions
Coinbase has joined the ranks of prominent cryptocurrency trading platforms like Binance by integrating the Bitcoin Lightning Network, fulfilling promises made by CEO Brian Armstrong.
In a statement released on April 3rd, Lightspark, a lightning network-based payment infrastructure provider, announced its selection by Coinbase to facilitate the integration of the Bitcoin Lightning Network.
Through this partnership, Coinbase will utilize Lightspark’s remote-key signing implementation. This setup enables Coinbase to maintain control of the Lightning signing keys while Lightspark manages the Lightning node infrastructure. This collaborative approach ensures smooth operations without overwhelming Coinbase’s team with the management of a large-scale implementation.
Lightspark has garnered significant success in simplifying Lightning node management. Its suite of products, including SDKs, APIs, and developer tools, seamlessly integrates with the Lightning Network. Moreover, Lightspark’s AI-based smart engine, known as Lightspark Predict, dynamically optimizes liquidity needs to improve transaction success rates in real time.
Benefits of Lightning Integration
The integration provides several advantages for Coinbase, including leveraging Lightspark’s node infrastructure while allowing its team to concentrate on customer-centric initiatives.
Furthermore, the collaboration will positively impact the Bitcoin network, particularly during periods of increased transaction fees, by improving scalability and transaction efficiency. Furthermore, it sets the foundation for future applications by supplying liquidity to the Bitcoin network.
Shan Aggarwal, Coinbase’s VP of Corporate & Business Development, conveyed excitement regarding the partnership, expressing the company’s eagerness to collaborate with Lightspark to remove payment barriers and facilitate faster and more cost-effective Bitcoin transactions by supporting the Bitcoin Lightning Network.
Recently, Coinbase has faced mounting inquiries from various crypto community members regarding its delay in adopting the scaling solution, especially following the integration of the technology by major competitors like Binance.
In response, Armstrong reaffirmed Coinbase’s commitment to incorporating the Lightning Network, highlighting the company’s ongoing efforts.
This integration holds significance for Bitcoin, considering the growing demand for streamlined Bitcoin transactions amidst soaring prices.
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