Binance and Coinbase Silent on Bitcoin Lightning: Community Trying to Understand Why | Cryptocurrency

Bitcoin Lightning Network integration has started to take off among cryptocurrency exchanges worldwide. However, some of the biggest cryptocurrency trading platforms in the world are apparently in no rush to integrate the protocol.

Last week, crypto trading app Robinhood became the latest major industry player to announce Lightning integration, following in the footsteps of BitPay and crypto exchange Kraken.

Since the main purpose of the Lightning integration is to reduce the cost of Bitcoin (BTC) transactions and speed up network transfers, one might wonder which cryptocurrency exchanges still haven’t added Lightning support.

Binance, Coinbase and FTX remain silent on Lightning

Not everyone is happy with the adoption rate of Bitcoin LN. Software QA tester and crypto enthusiast David Coen is disappointed with the lack of progress in integrating the Lightning Network among major crypto exchanges. He compiled data from official sources, social media presences, and Lightning explorers like 1ML and Amboss, to find that Binance, Coinbase, and leading South Korean crypto exchange Bithumb are not listed as “exchanges”. lightning”.

Although they provided comprehensive information about the Lightning Network on their websites, Coinbase and Binance declined to comment on their potential Lightning Network integration plans with Cointelegraph.

FTX – which is not mentioned in Coen’s list – also declined to comment. In January last year, FTX said it “probably pays more in transaction fees than any other entity in the world” on its official Twitter account.

There are apparently a number of possible reasons why some of the biggest cryptocurrency exchanges in the world have not yet added Lightning support.

A Redditor suggested that the availability of the Lightning Network would essentially be associated with less incentive to keep Bitcoin on exchanges like Binance due to costly withdrawals. “It may not be to Binance’s advantage to implement it. Personally, I want to use the Lightning Network to move all my BTC trades to cold storage,” he said.

According to Coen, implementing Lightning might simply not be a priority for some major cryptocurrency exchanges, or even against their business plans for others.

“I think Binance has no interest in integrating Lightning Network deposit or withdrawal, as it might go against their business plans,” Coen said. He suggested that Binance might be more interested in promoting the use of its proprietary blockchain networks, including Binance Beacon Chain and Binance Smart Chain, especially for withdrawals.

Some major cryptocurrency exchanges prioritize industry trends like NFTs on the Lightning Network

Coen pointed out that Lightning not only allows Bitcoin to be moved cheaply, but also allows users to hold actual BTC, stating:

With Lightning Network, users can move funds even for free, if they have a direct channel to the exchange and, more importantly, they have a real bitcoin instead of a bitcoin token on an Ethereum network VirtualMachine.

The Lightning enthusiast also doesn’t expect other exchanges like Coinbase to integrate Lightning support in the near future “since the priority seems to be to integrate as many altcoins as possible and keep up with market trends. “, did he declare. Coen added that support for non-fungible tokens (NFTs) appears to be more of a priority for Coinbase than for Lightning, citing the company’s NFT initiative officially released last year. The expert’s remarks echoed similar comments in the community.

Lightning is less and less cutting-edge and more and more necessary

According to some community members, Lightning is still a cutting-edge development today, which makes major cryptocurrency exchanges take a lot of time and effort to make such improvements.

However, with exchanges like Bitfinex, OKX (formerly OKEx) and Kraken adding Lightning, “it becomes less forward-thinking and more necessary to compete,” a spokesperson for explorer Amboss told Cointelegraph.

“The user experience with Lightning is superior and exchange users will be looking for the easiest way to deposit and withdraw on their exchange of choice. […] Lightning support is a necessity for users who need to execute fast transactions,” the rep said.

Launched in March 2018, the Lightning Network is a Bitcoin Layer 2 protocol designed to enable faster and cheaper BTC transactions. Bitfinex is believed to be the first cryptocurrency exchange in the world to add Bitcoin Lightning support for payments by integrating the protocol in December 2019.

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Binance and Coinbase Silent on Bitcoin Lightning: Community Trying to Understand Why | Cryptocurrency

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