Coinbase has selected Lightspark to integrate the Bitcoin Lightning Network.
This initiative aims to enhance the platform with faster and more cost-effective Bitcoin transactions, an important step towards improving efficiency.
Coinbase to Integrate the Bitcoin Lightning Network
The Bitcoin Lightning Network, a Layer 2 payment protocol, enables quicker transactions than Bitcoin’s primary network by reducing the blockchain’s burden. Lightspark, which specializes in providing access to the Lightning Network, has been working with Coinbase to implement this technology.
Through its software, Lightspark simplifies the integration and management of the Lightning Network for institutions. It offers a suite of tools designed for seamless transactions. The company boasts an AI-driven engine that optimizes liquidity and transaction routing.
The partnership entails Coinbase utilizing Lightspark’s remote-key signing feature. Therefore, Coinbase will retain control over the Lightning signing keys while Lightspark manages the node infrastructure. This setup is designed to scale effectively, offering a reliable node service with comprehensive functionality through an intuitive interface.
This allows Coinbase to focus on enhancing user experience without the need to manage a large-scale Lightning Network implementation.
“Coinbase is committed to making the global financial system faster and more efficient. We’re excited to partner with Lightspark to eliminate payment barriers and enable faster and cheaper Bitcoin transactions through support for the Bitcoin Lightning Network,” Shan Aggarwal, Coinbase VP of Corporate & Business Development, said.
The adoption of the Lightning Network by Coinbase is anticipated to significantly impact its operational efficiency and customer experience, particularly in terms of transaction speed and cost. It also marks a notable development for the Lightning Network, potentially increasing its usage and visibility within the cryptocurrency ecosystem.
Read more: The Best Bitcoin Lightning Network Wallets In 2024
This integration paves the way for Bitcoin’s new payment applications and liquidity options, aligning with broader trends in cryptocurrency adoption and technology advancement.
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