On the 20th of June, Binance, a cryptocurrency exchange, declared that it had initiated the operation of nodes on the Bitcoin Lightning Network, which is considered a vital step towards incorporating it for deposits and withdrawals.
Binance acknowledged users who had observed their new Lightning nodes and confirmed their existence via a tweet. However, Binance emphasized that further technical tasks must be accomplished before the Lightning integration can be fully established, pledging to provide progress reports throughout the process.
Following the network congestion experienced on the 7th of May, which affected the Bitcoin network, Binance revealed its intention to incorporate the Lightning Network to mitigate bottlenecks. Binance acknowledged its ongoing efforts to facilitate BTC Lightning Network withdrawals via a tweet, recognizing its potential in such scenarios. The surge in BRC-20 transactions, with meme coins’ popularity being a contributing factor, was the primary cause of the increased congestion.
The Bitcoin Lightning Network is a layer-two protocol that is constructed on the Bitcoin blockchain to combat scalability difficulties. It enables participants to establish payment channels, perform off-chain transactions promptly and economically, and settle the channels on the Bitcoin blockchain when required. The Lightning Network strives to augment the pace, scalability, and confidentiality of Bitcoin transactions, rendering it more efficient for microtransactions while reducing fees and congestion on the primary network.
Binance has recently been embroiled in a legal dispute with the United States Securities and Exchange Commission (SEC), resulting in an uncertain period for the organization. Nevertheless, there is a degree of respite following the approval of a consent agreement by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia between Binance, Binance.US, and the SEC. The consent agreement effectively terminated a temporary restraining order filed by the SEC, which would have frozen all Binance.US assets.
