Binance Enhances Bitcoin Transactions with Lightning Network Nodes

Binance Starts Running Nodes on Bitcoin Lightning Network

On June 20, Binance, a cryptocurrency exchange, revealed that it had started running nodes on the Bitcoin Lightning Network as a major step in incorporating it for deposits and withdrawals.

In the tweet, Binance thanked users who spotted their new Lightning nodes and verified their existence. Nevertheless, they noted that extra technical work needs to be done before the Lightning integration is completely operational, assuring that they will give updates as they go.

In reaction to the clogging experienced on the Bitcoin network on May 7th, Binance revealed its intentions to incorporate the Lightning Network to reduce the congestion issue. Through a tweet, Binance highlighted its ongoing endeavors to enable BTC Lightning Network withdrawals, acknowledging its potential in such circumstances. The augmented congestion was mainly due to a spike in BRC-20 transactions, with the popularity of memecoins playing a contributory role.

The Lightning Network, a layer-two protocol constructed on the Bitcoin blockchain, is designed to tackle scalability issues. It allows users to form payment channels, make off-chain transactions rapidly and economically, and settle the channels on the Bitcoin blockchain when essential. The Lightning Network is intended to improve the velocity, scalability, and privacy of Bitcoin transactions, making it more suitable for microtransactions while diminishing costs and traffic on the main network.

Binance’s BNB Chain has launched a layer-2 testnet powered by Optimism.

SEC Dispute with Binance Resolved

Recently, Binance has been embroiled in a legal dispute with the United States Securities and Exchange Commission (SEC), leading to a period of doubt for the company. Fortunately, Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia accepted the “Proposed Stipulation and Consent Order” between Binance, Binance.US, and the SEC, which has assuaged the anxiety. This agreement has dismissed a temporary restraining order filed by the SEC that would have blocked all Binance.US assets.

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