Binance launches Lightning Network nodes for deposits and withdrawals

The exchange’s team warned that there is still “more tech work to be done” before the protocol is fully implemented

20.06.2023 - 15:00

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What’s new? On June 20, the Binance exchange team confirmed the launch of Lightning Network payment protocol nodes as part of a plan to integrate it for depositing and withdrawing funds. However, the company noted that there is still “more tech work to be done” before the network is fully implemented. Binance first announced plans to integrate the Lightning Network on its Twitter account on May 8. The announcement followed an overload on the Bitcoin network that the platform encountered when processing client withdrawals.

#Binance is working to integrate the #Bitcoin Lightning Network for deposits and withdrawals. Some eagle-eyed users spotted our new lightning nodes recently. Yes - that's us! However, there's still more tech work to be done. We'll update once Lightning is fully integrated. https://t.co/N0oN8561sN
— Binance (@binance) June 20, 2023

The Lightning Network, a Layer 2 (L2) payment protocol, is used to speed up transactions on the Bitcoin network and address scalability issues. It was implemented into the mainnet in 2018.

What happened before? On May 7, Binance twice suspended bitcoin withdrawals due to the high load on the network. The next day, the platform’s team first reported that it was considering allowing withdrawals through the Lightning Network.

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In May, analytics software company MicroStrategy launched a Lightning Network-based rewards platform with rewards in satoshi (1 SATS = 0,00000001 BTC).

That same month, the Lightning Network team began partnering with analytics companies Chainalysis and TRM Labs to help ensure regulatory compliance of regulated firms when using the protocol.

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