Coinbase embraces Bitcoin Lightning network to speed up transactions (2024)

Coinbase embraces Bitcoin Lightning network to speed up transactions Oluwapelumi Adejumo · 1 month ago · 1 min read

News ▸ Bitcoin ▸ Exchanges

Coinbase joins a list of notable crypto trading platforms like Binance that has integrated the solution.

Oluwapelumi Adejumo

Apr. 3, 2024 at 7:45 pm UTC

1 min read

Updated: Apr. 3, 2024 at 7:28 pm UTC

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

US-based crypto exchange Coinbase is finally integrating Bitcoin Lightning network after several promises by the exchange CEO Brian Armstrong.

In an April 3 statement, Lightspark, a lightning network-based payment infrastructure provider, revealed that it was selected by the crypto exchange to facilitate the integration of Bitcoin Lightning Network.

Under this partnership, Coinbase will leverage Lightspark’s remote-key signing implementation. This would allow Coinbase to retain control of the Lightning signing keys while Lightspark will manage the Lightning node infrastructure. This shared responsibility model ensures efficient operations without burdening Coinbase’s team with managing a large-scale implementation.

Lightning integration benefits

The integration offers Coinbase several advantages, including allowing the exchange to leverage Lightspark’s node infrastructure while freeing its team to focus on customer-centric initiatives.

Moreover, the collaboration will positively impact the Bitcoin network, particularly during increased transaction fees, by enhancing scalability and transaction efficiency. It also lays the groundwork for future use cases by providing liquidity to the Bitcoin network.

Shan Aggarwal, Coinbase’s VP of Corporate & Business Development, said:

“We’re excited to partner with Lightspark to eliminate payment barriers and enable faster and cheaper Bitcoin transactions through support for the Bitcoin Lightning Network.”

During the past year, Coinbase has faced increased questions from several crypto community members over its failure to integrate the scaling solution, especially after major rivals like Binance integrated the technology.

In response, Armstrong pledged that Coinbase would also incorporate the Lightning Network while revealing the firm’s efforts.

This integration is pivotal for BTC, given the increasing demand for streamlined Bitcoin transactions amidst surging prices.

Mentioned in this article

Bitcoin Coinbase Brian Armstrong

Posted In: Bitcoin, Exchanges

Author

Oluwapelumi Adejumo Journalist at CryptoSlate

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

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FAQs

Does coinbase support the Bitcoin Lightning Network? ›

Coinbase, the largest crypto exchange in the United States, just added support to the Lightning Network, a payments and routing solution that makes transacting in bitcoin cheaper and faster. Despite being around since 2017, Coinbase took the time to add this improvement to its platform.

Read On ›

What is the lightning transaction on coinbase? ›

Coinbase has begun supporting the Bitcoin Lightning Network, providing users with a choice between Lightning and the Bitcoin network when transferring Bitcoin (BTC). By using the layer-2 Lightning Network, Coinbase customers can transfer Bitcoin more quickly and cheaply than transactions on the Bitcoin blockchain.

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What is the Lightning Network Bitcoin transactions? ›

The Lightning Network is a second-layer network intended to solve the problem of slow transaction speeds and high costs on the Bitcoin blockchain by introducing off-chain transactions. The Network allows users to open channels that can stay open until they are done transacting.

Is coinbase integrates Bitcoin's Lightning Network in partnership with Lightspark? ›

Coinbase (COIN), the largest regulated cryptocurrency broker, said Tuesday it is partnering with Lightspark to integrate bitcoin's Lightning Network. This move is aimed at bringing new efficiencies to the realm of cryptocurrency payments.

See Details ›

Is Lightning Network as safe as Bitcoin? ›

The Lightning Network is designed to speed up transaction processing times and decrease the associated costs of Bitcoin's blockchain. However, the Lightning Network still has costs associated with it and can be susceptible to fraud or malicious attacks.

Find Out More ›

What is the Lightning Network fee on Coinbase? ›

The Lightning Network is a micropayment network that enables the transfer of bitcoin without incurring the transaction fee associated with the Bitcoin blockchain. When you send bitcoin from Coinbase via the Lightning Network, we will charge a processing fee equal to 0.1% of the amount of bitcoin transferred.

Tell Me More ›

What is the difference between Bitcoin and Bitcoin Lightning? ›

The Lightning Network serves as a second layer for Bitcoin (BTC), employing micropayment channels to enhance the blockchain's scalability and process transactions more efficiently and cheaply. A Lightning wallet is significantly faster, scalable, and more efficient than traditional on-chain transactions.

Show Me More ›

How long does it take a transaction to settle on the Bitcoin Lightning Network? ›

Speed: Settlement time for lightning network transactions is under a minute and can occur in milliseconds. Confirmation time on the bitcoin blockchain, for comparison, occurs every ten minutes, on average.

Explore More ›

How do I withdraw Bitcoin from Lightning Network? ›

How to Withdraw Bitcoin Through Lightning

Here are the steps to withdraw Bitcoin through lightning. Visit Wallet>Withdrawal. ...
OR. ...
Select the asset i.e., Bitcoin (BTC)
Then from the network dialog box choose “Lightning”
Enter the invoice number from the wallet/exchange you are willing to deposit these tokens.

Oct 23, 2023

What is the problem with the Lightning Network? ›

- The Problem for Lightning: This malleability posed a significant challenge for the Lightning Network. Because Lightning relies heavily on off-chain transactions, the ability to modify a TxID could potentially be exploited to disrupt payment channels or create fraudulent transactions.

Show Me More ›

What are the benefits of Lightning Network in Bitcoin? ›

The Lightning Network presents a promising solution to the scalability and efficiency challenges faced by the Bitcoin network. Its advantages, such as improved scalability, instant payments, lower transaction fees, and enhanced privacy, make it an appealing option for the future of digital transactions.

Read The Full Story ›

How do I use Lightning Network for Bitcoin? ›

To get started sending bitcoin with the Lightning Network:

Tap the Payments '$' tab on your Cash App to get to the home screen.
Tap the QR Scanner on the top left corner of the screen.
Hold your camera over the Lightning Invoice QR code to scan it.
Follow the prompts to confirm and pay the request.

See Details ›

Does Coinbase support Bitcoin Lightning Network? ›

Coinbase is rolling out Lightning Network support from today, seven months after the crypto exchange confirmed its decision to integrate the protocol.

Get More Info Here ›

What network does Coinbase use to receive Bitcoin? ›

Coinbase Wallet supports the following networks: Ethereum, Polygon, Bitcoin, Dogecoin, Litecoin, Stellar Lumens, XRP, and Solana. Coinbase Wallet also supports the following Ethereum Layer-2 networks: Arbitrum, Avalanche C-Chain, BNB Chain, Fantom Opera, Optimism, Polygon, and Gnosis.

How do I transfer bitcoins to Lightning Network? ›

Deposits

Once you are signed in to your Kraken click on the Deposit button.
Select Bitcoin (BTC) and click on the Lightning Network tab.
Enter an amount and select Generate deposit request.
Use your Lightning wallet app to scan the QR code on the Kraken deposit page.
Confirm Pay in your Lightning wallet app.

More items...

Which wallet support bitcoin Lightning? ›

An LN wallet is a wallet that supports the using the Lightning Network for making cheap and near-instant payments over the Bitcoin network. Depending on what kind of crypto you hold, popular ones include Metamask, Exodus, and Coinbase Wallet to name a few.

View Details ›

Can I invest in bitcoin Lightning Network? ›

Buy Bitcoin on Lightning the easy way

Buy Lightning sats by card or bank transfer on any of your wallets in a few clicks, with no identification required. Get the live market price with low, transparent fees and zero hidden costs. Access to this page is forbidden, please contact the website administrator to get access.

Can I use bitcoin Lightning Network? ›

If you want to make transactions using the Lightning Network, you'll need to send some BTC (for instance from your Coinbase account) to a Lightning-compatible wallet. There are dozens to choose from. Popular options include both “custodial” and “non-custodial” wallets.

Learn More ›

How do I deposit bitcoin on Lightning Network? ›

Visit Wallet>Deposit.
Select the asset i.e., Bitcoin (BTC)
Then from the network dialog box choose “Lightning”
Enter the amount and tap on “Create Invoice”
Once you tap on create invoice, a QR code and an Invoice number will appear, you can use this.

Oct 20, 2023

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