Coinbase Moves Closer to Bitcoin Lightning Integration in Partnership with Lightspark
Summary:
Coinbase is set to integrate Bitcoin Lightning onto its platform, following a partnership with Lightning-focused venture Lightspark. The move will offer Coinbase's 108 million users faster and cheaper Bitcoin transactions. While details of the integration have not been revealed, it forms part of a broader effort to boost Bitcoin's scalability and transaction efficiency. Coinbase's decision follows similar steps by competitor Binance, signaling growing sector-wide adoption of the Bitcoin Lightning network.
Coinbase, a major player in the crypto industry, has strengthened its intentions to incorporate Bitcoin Lightning into its platform, through a recent collaboration with Lightspark. Lightspark is a Lightning-focused venture helmed by ex-PayPal president David Marcus. In an online blog post dated April 4, Brian Armstrong, CEO of Coinbase, attested to the imminent integration of the second-layer Bitcoin network which promises quicker and more cost-efficient Bitcoin transactions for their notable 108 million users. The source of this information is Brian Armstrong. The proposed initiation of “all Coinbase interfaces with Lightning” is said to address the escalating fee issue plaguing the fundamental layer of Bitcoin, as outlined by Lightspark in a blog post on April 3. Though Armstrong had suggested the implementation of Bitcoin Lightning in September of last year, specific details regarding this shift were still under wraps. Reputed news corporation Cointelegraph sought to get a comment from Coinbase but received no immediate reply. Lightspark, established in 2022, has primarily been devoted to eliminating technical difficulties associated with the operation and management of a Lightning node for reliable transaction processes. The establishment has also designed Lightspark Predict – a smart solution utilizing Artificial Intelligence to enhance liquidity conditions and routing in real time, with an aim to improve transaction success and finality times. This information was sourced from Christian Catalini. According to statistics by Bitcoin financial services business, River, the success rate for Lightning payments stands around 99.7%, calculated from an estimated 308,000 Lightning transactions conducted on its platform last October. It should be noted that failing transactions are typically linked to a lack of adequate liquidity in the designated payment route. Average transactions via Lightning were reported to be around 44,700 satoshis ($11.84). The number of active Lightning users in September ranged between 279,000 and 1.1 million, as estimated by the company. Binance, a principal competitor of Coinbase, integrated Bitcoin Lightning in July of the previous year. Contrary to some beliefs that Bitcoin serves better as a store of value technology rather than a medium of exchange, Lightning has seen rising popularity in Lugano, Switzerland, El Zonte in El Salvador, commonly referred to as "Bitcoin Beach," and Utiva in Costa Rica, known as the "Bitcoin Jungle". Well-known Bitcoin advocate Michael Saylor and other industry experts question how Bitcoin transactions can make a significant comeback.
Published At
4/4/2024 2:44:29 AM
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