Coinbase to Integrate the BTC Lightning Network
• Coinbase – the largest and most popular crypto exchange in the U.S. – has confirmed it’s going to be integrating the bitcoin Lightning Network onto its platform, thus ensuring bitcoin transactions scale and move along at quicker paces.
• The news involving the Lightning Network was announced on Twitter by Brian Armstrong, the CEO of Coinbase.
• The news comes at an interesting time given Coinbase is dealing with quite a bit right now from receiving a Wells notice from the Securities and Exchange Commission (SEC).
What is Bitcoin Lightning Network?
The Bitcoin Lightning Network is an off-chain scaling solution that allows for faster and cheaper transactions compared to traditional on-chain methods. It works by setting up payment channels between users that can send payments back and forth without having to record each transaction on the blockchain. This allows for faster settlement times and lower fees as only one transaction needs to be recorded on the blockchain when closing out a payment channel.
Why Coinbase Integrating The BTC Lightning Network?
By integrating with lightning network, Coinbase will be able to offer customers faster transactions with lower fees which will help them grow their platform even further. Additionally, this could also help reduce congestion on the main blockchain as more transactions are moved off-chain which helps keep costs down for all users of cryptocurrency.
What Does The SEC Have To Do With It?
The news comes at an interesting time given Coinbase is dealing with quite a bit right now from receiving a Wells notice from the Securities and Exchange Commission (SEC). A Wells notice doesn’t charge a company with any crime but it’s a warning to the company receiving the notice that it’s likely going to be charged in the future. This gives them time to prepare and get legal defense against any potential charges in order protect their business interests in case anything does happen in court.
Overall, it appears that Coinbase’s decision to integrate with lightning network is a great move that will benefit both its customers as well as other users of cryptocurrency by reducing congestion on-chain while providing faster transaction speeds and lower fees. Additionally, this could potentially give them some protection against any potential legal issues if they receive any kind of charge from SEC down the line due to their current status as being under investigation by them currently.