Coinbase Launches Bitcoin Lightning Support

Coinbase has announced the integration of the Lightning Network to facilitate Bitcoin payments, enhancing the speed and reducing the cost of transactions. As a leading crypto exchange in the United States by trading volume, Coinbase now offers its users the ability to choose how they send Bitcoin: using the traditional network or the faster, more economical Lightning Network.

“Starting today, Coinbase is rolling out support for the Lightning Network enabling instant, low-cost Bitcoin transfers. Users will have the option to choose between using Lightning for faster and cheaper Bitcoin transactions or processing their transactions on the traditional Bitcoin network,” said Coinbase in the official announcement.

The Lightning Network, which operates by facilitating off-chain Bitcoin transfers, significantly cuts down transaction times and costs. Transactions that previously took 10 minutes to 2 hours to process on-chain can now be completed almost instantly and for a fraction of the cost. “Until now, bitcoin transfers on Coinbase were processed onchain which could take anywhere from 10 minutes to 2 hours and could be costly for users. The Lightning Network, built on top of Bitcoin, enables instant off-chain bitcoin transfers at a fraction of the cost. Since its launch in 2017, the Lightning Network has grown steadily, leading to an increase in demand from our customers,” explained the spokesperson.

Despite the benefits, the Lightning Network integration is currently not available in all regions. This new feature promises to make Bitcoin transactions up to 20 times cheaper than traditional credit card or wire transfer fees, marking a significant advancement in reducing the costs associated with digital currency exchanges.