Coinbase CEO Brian Armstrong has announced that the cryptocurrency exchange is actively exploring the best way to integrate the Bitcoin Lightning Network. This comes after the company faced criticism for not adding support for the layer-2 scaling solution, which enables faster and cheaper BTC transactions compared to the Bitcoin base network.
Armstrong’s comments were made in response to a question from former Twitter CEO Jack Dorsey. Dorsey questioned Coinbase’s apparent disregard for the Lightning Network integration. In his response, Armstrong acknowledged the importance of the scalability solution but also pointed out the complexities involved in implementing it. He described the process as “non-trivial” but emphasized that it is worth doing. He assured Dorsey that Coinbase is actively working on finding the best approach to incorporate Lightning, recognizing the potential for payments to thrive in Bitcoin.
While Coinbase has been open to the Lightning Network technology, Armstrong did not disclose specific details about the potential integration or provide an estimated timeline for its implementation. This is not the first time Armstrong has faced criticism for “ignoring” the Lightning Network.
In contrast, Binance recently announced the successful integration of Bitcoin on the Lightning Network. This move was prompted by the surge in transaction fees caused by the creation of memecoins on Bitcoin. Binance had to temporarily pause BTC withdrawals due to the increased fees. Other platforms, such as Bitfinex, Kraken, and OKX, have also integrated the Lightning Network in recent years.
The Lightning Network’s capacity has been steadily increasing, with a brief surge to an all-time high of 5,000 BTC earlier this year. It continues to gain momentum in emerging markets, particularly in South America and Africa.
Overall, Coinbase is actively exploring the best approach to integrate the Lightning Network, recognizing its potential to enhance the speed and cost-effectiveness of Bitcoin transactions. While specific details and timelines are yet to be disclosed, the move aligns with the growing adoption of the Lightning Network by other major cryptocurrency platforms.
