Renowned crypto exchange OKEx is now shifting to cheaper and faster Bitcoin [BTC] transactions with its upcoming Lightning Network integration.
In line with an official announcement, OKEx’s Bitcoin Lightning Network is going to be integrated “in the approaching quarter,” making OKEx a participant node within the Lightning Network.
The integration will permit OKEx users to pick the Lightning Network option when depositing and withdrawing BTC, simplifying to decrease transaction fees and times.
The Lightning Network is a secondary-layer scaling solution and payment protocol supported at the top of the Bitcoin blockchain. The protocol was suggested by Joseph Poon as well as Thaddeus Dryja earlier in 2015 within an attempt to unravel Bitcoin’s scalability problem. Consistent with data from the crypto analytics website BitInfoCharts, the typical Bitcoin transaction fee amounted to over $15 USD earlier on 1st Feb.
As the Lightning Network isn’t a blockchain itself but rather a secondary layer, the answer was originally mostly used for little or maybe microtransactions Bitcoin transactions. To unravel this problem, Lightning Labs introduced so-called “Wumbo” channels earlier in August 2020 so as to form it possible for nodes to service larger transactions while reducing on-chain fees. The word Wumbo, which apparently means “large”, may be regarded as an episode of SpongeBob SquarePants. These channels are so named because they’re larger than the 0.1677 BTC [$5,800] limit.
OKEx isn’t the sole cryptocurrency exchange to start out experimenting with the Bitcoin Lightning Network. Earlier in July 2019, European cryptocurrency exchange Bitstamp found out its own Lightning Network node to spice up the network’s capabilities. Another global exchange, Bitfinex, reportedly became the primary cryptocurrency exchange to permit Lightning payments earlier in December 2019. Later in September 2020, Bitfinex revealed support of Lightning Network’s Wumbo channels to allow their users to deposit and withdraw large amounts of Bitcoin.
Amid Lightning Labs expanding the Lightning Network’s capabilities, more cryptocurrency exchanges have shifted towards integrating the protocol in recent months. In December 2020, another renowned U.S.-based cryptocurrency exchange Kraken revealed that it too will integrate the Bitcoin Lightning Network in 2021. OKCoin also recently announced its plans to integrate the network in Q1 of 2021.