Coinbase has announced its intention to integrate the Lightning Network into its platform. This move, confirmed by Brian Armstrong, the co-founder of Coinbase, could potentially revolutionize Bitcoin transactions, making them faster and cheaper.
Armstrong, in his recent revelation, expressed his unwavering support for Bitcoin's progress, stating, "Not sure why you think we’re ignoring Bitcoin - we’ve onboarded more people to Bitcoin than probably any company in the world." This statement comes amid criticism regarding Coinbase's alleged neglect of Bitcoin and its Layer 2 technology, the Lightning Network.
The Lightning Network promises to enhance Bitcoin transactions by making them faster and cheaper, a significant step towards its broader adoption as a medium of exchange. This Layer 2 solution, much like Optimism and other L2 protocols, enhances Bitcoin’s performance by allowing users to send BTC directly to each other. These transactions are then bundled together and added to the main system all at once, providing a shortcut for BTC transactions.
The Lightning Network, which has been gaining popularity since 2020, is particularly effective for small payments and everyday transactions. Coinbase's recent development follows Binance's integration of the Bitcoin Lightning Network, a significant move we reported last month. Other exchanges, including Bitfinex, Kraken, River Financial, and OKX, have also adopted Lightning.
The Coinbase's decision to adopt the Lightning Network has elicited reactions from prominent individuals in the cryptocurrency sphere, such as Jack Dorsey, the ex-CEO of Twitter and a staunch Bitcoin advocate. Despite his initial skepticism, Dorsey subsequently recognized the significant role Coinbase plays in the Bitcoin ecosystem and indicated his readiness to join forces.