Binance, the biggest cryptocurrency exchange by trading volume, has now fully integrated the Lightning Network. The Lightning Network is a scaling solution that operates on top of the Bitcoin blockchain to enable faster transactions.
Binance announced on Monday that users can now deposit and withdraw Bitcoin using the Lightning Network. To use this Layer-2 scaling solution, users must choose “BTC-Lightning” as the network when depositing or withdrawing Bitcoin on Binance.
Last month, Binance revealed it was adding Lightning Network nodes to its infrastructure. The exchange had announced plans to enable Lightning withdrawals back in May after high congestion on the Bitcoin network forced Binance to temporarily stop Bitcoin withdrawals.
In May, the Bitcoin mempool that holds unconfirmed transactions became very congested, exceeding 420,000 pending transactions. This congestion level surpassed what was seen during the 2021 Bitcoin bull run.
The high network congestion and increased Bitcoin transaction fees were largely caused by the new BRC-20 token standard launched on the Bitcoin Ordinals protocol.
Several other major cryptocurrency exchanges like Kraken, OKX, and Bitfinex have also integrated support for the Lightning Network. The mobile payment app Cash App supports Lightning as well.
Multiple addresses
In addition to Lightning Network integration, Binance announced a feature allowing users to generate multiple deposit addresses for one network.
Initially, this is available for Ethereum and compatible networks like Arbitrum and BNB Chain, supporting ERC-20 tokens. More networks will be added later.
Users can get up to 20 deposit addresses per network for now. Binance will adjust this limit as needed.
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