Prominent digital asset exchange Coinbase is rolling out support for the Bitcoin Lightning Network, as stated by the exchange on Tuesday.
Progressively available on both its mobile and desktop platforms, Coinbase Lightning Network integration now allows users to choose between sending bitcoin using the Bitcoin mainnet or the Lightning Network.
Previously, bitcoin transfers on Coinbase were processed on-chain, taking anywhere from 10 minutes to 2 hours and potentially costing users a significant amount in fees.
However, the Lightning Network, which operates on top of Bitcoin mainchain, allows users to send and receive BTC without needing to broadcast transaction directly to the Bitcoin mainnet.
“Since its launch in 2017, the Lightning Network has grown steadily, leading to an increase in demand from our customers. With this integration, Coinbase customers can now instantly send, receive, or pay with bitcoin on Lightning directly from their Coinbase account,” the exchange writes.
Coinbase Lightning Network Integration
Facilitating Coinbase’s integration of the Lightning Network is Los Angeles-based Lightspark. Established in 2022, the company offers enterprise-grade Lightning Network products.
Coinbase’ co-founder and CEO, Brian Armstrong, shared the news on X, stating:
“Excited to be live on the Bitcoin Lightning network – let’s get every transaction under 1 second and 1 cent to bring in the next wave of adoption.”
The exchange believes that the future of payments is digital assets, and it is committed to “building and scaling faster, cheaper, and more secure payments” for the Bitcoin Network.
“By partnering with Lightspark to integrate the Lightning Network, Coinbase is demonstrating its support of Bitcoin while remaining focused on decreasing both transaction times and fees,” the official press release explains.
On the other hand, David Marcus, the CEO and co-founder of Lightspark, also expressed enthusiasm for the integration. He stated:
“We’re so thrilled to be part of this journey with you to bring Lightning to 100s of millions of people in over 100 countries. Big milestone for the entire network and for Bitcoin. Let’s go!”
Switching Between Bitcoin Mainnet and Lightning Network
Coinbase customers interested in using the Lightning Network can switch between Bitcoin mainnet and the Lightning Network when entering the amount of bitcoin they want to send. They will then need to include a Lightning “invoice” address, which would be generated by the receiver.
Notably, users won’t need to run a node, manage a channel, or deal with liquidity. Both Coinbase and Lightspark will handle these aspects, while Coinbase manages keys and security.
Integration Across the Industry
San Francisco-based Coinbase has been exploring Lightning Network integration since last fall. Although Coinbase met with different Lightning Network providers, Lightspark fit the bill, offering all of the features they were looking for.
However, Coinbase isn’t the sole digital asset exchange utilizing the Lightning Network.
Binance, its rival, announced Lightning Network integration in July last year. Additionally, exchanges like Bitfinex, Kraken, and Bitstamp have integrated or have plans for integrating the Lightning Network in the future.
Moreover, the Lightning Network is supported by multiple merchants, wallets, applications, and services, enabling users to make fast and convenient Bitcoin payments.
With more users and businesses embracing this innovative technology, the Lightning Network is anticipated to expand further.
