Leading cryptocurrency exchange Coinbase is exploring integrating Bitcoin's Lightning Network for payments as part of its broader strategy to develop cryptocurrency-based payment solutions worldwide.
Coinbase Wants to Extend Bitcoin's Lightning Network to Payments
CEO Brian Armstrong expressed the company's interest in adding the Lightning Network for payments at a meeting today.
Lightning Network is a second layer protocol for Bitcoin that facilitates micropayments through off-chain channels between nodes and aims to accelerate transactions on the Bitcoin blockchain at a lower cost.
Using the Lightning Network's micropayment channels, parties involved in a transaction can lock their funds on-chain so that several transactions are executed separately and then aggregated into a single transaction when sent to the main Bitcoin blockchain.
This approach significantly reduces network congestion and improves the overall speed and cost efficiency of Bitcoin payments.
Recognizing the complexity of the Lightning Network, Armstrong highlighted the value and potential of advancing Bitcoin payments, demonstrating Coinbase's commitment to exploring innovative payment solutions in the cryptocurrency space.
In response to a tweet from Jack Dorsey, founder of financial services firm Block Inc, Armstrong encouraged collaboration in further development of the Lightning Network for widespread adoption.
We’re looking into how to best add Lightning. It’s non-trivial, but I think worth doing. I’m all for payments taking off in Bitcoin.
Not sure why you think we’re ignoring Bitcoin – we’ve onboarded more people to Bitcoin than probably any company in the world.
Let’s build it… https://t.co/9dFGYd6XZt
— Brian Armstrong 🛡️ (@brian_armstrong) August 2, 2023
This marks a collaborative approach among industry players to strengthen the infrastructure and usability of cryptocurrencies during day-to-day transactions.
As of today, the Lightning Network's total capacity has reached 4,686.64 Bitcoins, which is worth just over $138 million at current market prices.
*Not investment advice.
