Coinbase, a leading cryptocurrency exchange, is set to enhance its platform by integrating the Bitcoin Lightning Network, according to CEO Brian Armstrong’s recent tweet. Armstrong’s response came after a Twitter user challenged him for not previously commenting on the Lightning Network.
The integration of this layer2 solution will provide Coinbase users with faster transaction speeds and lower fees, addressing Bitcoin’s scalability issues. While no timeline was provided for the integration, the announcement generated a positive response from the crypto community, including MicroStrategy founder Michael Saylor.
Some skeptics questioned the pace at which Coinbase will execute the integration, while others highlighted the importance of embracing the Lightning Network amid the current regulatory environment. By integrating the Lightning Network, Coinbase will join other major exchanges such as Kraken, Bitfinex, BitStamp, and OKEx, which already support the L2 solution.
The Bitcoin Lightning Network has experienced consistent growth in adoption over the past year, with the number of Bitcoins locked in Lightning reaching an all-time high of 5,490 BTC in February. Transaction volume on the network is also on the rise, with BitPay reporting an 18% increase in 2022 compared to 2021. Experts believe the network’s growth has been organic, as it lacks a native token like other protocols.
The Lightning Network has already seen successful applications in the payments space, with Strike launching a mobile payment app in 2020, followed by integrations with Shopify and expansions into Africa, El Salvador, and the Philippines.