Coinbase will finally integrate Bitcoin’s Lightning network


Key facts:
  • They are already working on the technical part, but there is no scheduled date yet.

  • Coinbase is one of the few major exchanges that has not integrated Lightning.

The integration of Bitcoin’s Lightning network into the Coinbase cryptocurrency exchange appears imminent. The platform partnered with a technology firm led by former PayPal president David Marcus to incorporate the micropayments solution into the exchange site’s servers.

In a statement, the company dedicated to the development of Lightning, Lightspark, announced the agreement with Coinbase to finally integrate Bitcoin’s second layer network on that exchange, something that the community of users of that company has been clamoring for for years.

“We are thrilled to bring Lightning to one of the most impactful and important companies in our industry at the perfect time,” says Lightspark.

As indicated by the company, “most of the complexity that typically comes with deploying and managing a Lightning node, as well as reliably sending and receiving transactions,” was eliminated.

They explain that Lightspark’s software development kit (SDK), application programming interfaces (API), and developer tools “enable seamless and simplified integration of the Lightning network.”

For the integration of Lightning into Coinbase, Lightspark will launch the Lightspark Predict protocol, which they describe as an “AI-based intelligent engine that optimizes liquidity requirements and routing in real time to achieve transaction success rates and higher finality times across the network.”

Additionally, Coinbase will use Lightspark’s remote key signing implementationwhich will give absolute control of the keys to that exchange, while the technology firm will host the exchange’s Lightning node.

“This integration allows Coinbase to benefit from a scalable, reliable and fully optimized node infrastructure that provides a deep set of functionality through a simple and intuitive interface,” notes Lightspark.

As it is, they predict that Coinbase customers “will benefit from instant and cheaper transfers, and this integration will pave the way for greater collaboration between companies in the coming months and years.”

In the words of Shan Aggarwal, Vice President of Corporate and Business Development at Coinbase, that exchange will eliminate “payment barriers” by allowing “faster and cheaper” bitcoin transactions.

An integration already planned

Lightspark and Coinbase announcement makes integration imminent which has been projected since April 2023when Coinbase CEO Brian Armstrong said they were planning to incorporate the bitcoin scalability solution.

In a post on his X account (formerly Twitter), he assured that the Lightning network was “something cool” that would be integrated into the exchangeas reported by CriptoNoticias.

It was not until September of that year when Armstrong confirmed the intention to integrate Lightning into the exchange’s servers. He assured at that time that BTC is the most important asset in the cryptocurrency ecosystem and, therefore, They made the decision to incorporate that technology.

However, he clarified that it was going to take time and from that moment he asked the exchange users for patience.

With the eventual incorporation of Lightning, Coinbase will join the list of large exchanges that have already integrated that BTC-adjacent technology. Binance, Bitfinex, Kraken, OKX and others make up the list, where there are more than a dozen exchange houses who have already integrated the Bitcoin micropayment solution.

Leave a Reply

Your email address will not be published. Required fields are marked *