In a recent tweet, crypto exchange OKCoin had announced the integration of bitcoin’s lightning network in its platform. This will help reduce bitcoin network fees for transactions made on the platform.
As stated in a blog by OKCoin, this is part of its effort to provide its customers the best trading experience. The integration of the Lighting Network on the exchange is scheduled to take place during Q1 of 2021.
According to OKCoin CEO, Hong Fang:
“The lightning network, like Bitcoin, requires a network of nodes and adoption of the technology to perform to the best of its capabilities. As part of our analysis of the technology, we assessed the strength and quality of the nodes and now feel the network is strong enough to participate as an exchange with a high volume of withdrawals and deposits a day.”
Fang added that the integration of the Lightning Network is highly beneficial for the whole crypto industry. He further added that the utilization of the technology will help in bitcoin’s massive adoption.
“We hope other blockchain companies follow suit and lift the whole industry up by speeding up bitcoin payments and look further to working further with the Lightning Labs team to advance this strategically important layer 2 addition to Bitcoin for more utility and wider adoption.”
Lighting Network is a protocol that focuses on scalable, instant, and low-cost off-chain transactions. Transactions made using the protocol do not require miners’ confirmation. This explains the low transaction fees and provides an option for micropayments. The integration of the Lightning Network can help decongest the bitcoin market during bull runs.
With OKCoin’s adding the protocol, its customers can now make transactions in as low as 1 satoshi. This is a far cry from transactions submitted directly to Bitcoin’s chain wherein the minimum required is 5460 satoshis.
Exchanges that have either added or announced integration include Bitfinex, Kraken, and CoinCorner. OKCoin is the newest addition to the growing list of Lightning Network supporters.
With the anticipated altcoin season, the adoption of the Lightning Network of exchanges in their platform is almost a must. The protocol is now considered a game-changer in the history of cryptocurrencies. But what could possibly be the reason behind its slow adoption? Are there drawbacks behind the protocol making crypto exchanges hesitant?