July 16, Binance Announce It integrates the Bitcoin layer 2 protocol lightning network Accessing its platform, users can use it to make deposits and withdrawals. Now, less than two months after development was completed, the platform has achieved a major milestone with the protocol.
Binance Node is growing rapidly
according to data From analytics platform Amboss, BinanceLightning nodes have been growing rapidly. The exchange is currently ranked 14th based on capacity, with 77.7 BTC out of a network total of 4,873.39 BTC.
This means that Binance’s Lightning integration has been well received, and Binance users are actively using Binance Lightning nodes to process their Bitcoin transactions.
This milestone is at Report The claim is that Binance’s implementation of Bitcoin’s Lightning Network has not seen impressive traction because users are not creating channels on the platform. According to the report published on August 16, no new channels have been created in the past 30 days.
In this regard, Ambers clarified Unlike some competitors such as Kraken, Binance does not broadcast node connection details, so “normal users” cannot establish a direct channel with Binance.
BTC price sitting at $26,042 | Source: BTCUSD on Tradingview.com
The Lightning Network Is Integral to Bitcoin Adoption
Bitcoin was created with a major focus on decentralization and security, not much attention was paid to its throughput.
Some argue that Bitcoin’s decentralization and security are more important than its throughput. However, if Bitcoin is to be widely used for micropayments and other transactions, it will need to scale.
This is why second-layer networks like the Lightning Network are integral to helping Bitcoin scale to become a global payment system.
The Lightning Network operates with the help of nodes, which act as tunnels for processing user transactions.
For context, Bitcoin processes 7 transactions per second (TPS). This number is very low compared to relatively new blockchains such as Cosmos, Solana, and Polygon, which have TPS of 10,000, 24,000, and 65,000, respectively.
However, Bitcoin can process transactions faster with the help of the Lightning Network because the TPS of the second-layer protocol is as high as 1 million.
Binance sees need The protocol was integrated on its platform due to the massive increase in Bitcoin transaction volume on its platform. By doing so, exchanges can process user transactions faster and more cost-effectively.
Other exchanges such as Kraken, Bitfinex, OKX, and BitStamp have already integrated the Bitcoin Lightning Network to handle increasing demand for Bitcoin without network congestion.
Featured image via Triple-A, chart via Tradingview.com