Coinbase to Integrate Lightning Network for Bitcoin Scalability
Coinbase CEO Brian Armstrong recently announced via Twitter that the cryptocurrency exchange will integrate the Bitcoin Lightning Network.
Armstrong responded to a tweet from Bitcoin advocate Wicked, who challenged him for not commenting publicly on the Lightning Network before.
My tweets auto-delete after some number of months, so there is no search history.
Lightning is great and something we’ll integrate.
— Brian Armstrong (@brian_armstrong) April 8, 2023
Brian Armstrong, the CEO of Coinbase, has expressed his belief that the Lightning Network is an excellent solution for Bitcoin’s scalability issues and that Coinbase will integrate it. However, Armstrong did not provide a timeline for the integration.
LN is an L2 network built on top of Bitcoin, designed to improve its scalability by providing faster transaction speeds and lower fees than the main network.
The growth in transaction volume has also been impressive, with BitPay reporting an 18% increase in 2022 compared to 2021 and a 32% increase in Q4 of 2022 compared to the previous year.
Armstrong’s announcement has been met with positive reactions from several crypto stakeholders, while others expressed skepticism about how long the integration process might take.
If Coinbase integrates the Lightning Network, it will join rival exchanges like Kraken, Bitfinex, BitStamp, and OKEx, which already support the L2 solution.
Given the current regulatory environment, some advise Coinbase to be quick with the integration to avoid having nothing to offer apart from Bitcoin.
Overall, the adoption of the Lightning Network is seen as organic, as the network does not have a native token like most protocols. Payments platform Strike has launched a mobile payment application on the network and has expanded into Africa, El Salvador, and the Philippines.