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Coinbase, the largest crypto exchange in the U.S. by trading volume, has officially launched support for the Lightning Network, enhancing the speed and reducing costs for Bitcoin transactions. This strategic move, implemented in partnership with Lightning Network infrastructure firm Lightspark, enables users to send, receive, or pay with Bitcoin more efficiently directly from their accounts. Previously, Bitcoin transactions on Coinbase were processed on the main blockchain, which could be slow and expensive during peak times.
The integration marks a significant development in making Bitcoin transactions more practical for everyday use. Lightning Network, a Layer 2 protocol developed in 2017, facilitates near-instant transactions at a fraction of the cost by enabling off-chain transactions before settling on the Bitcoin blockchain. At launch, Coinbase has set a conservative limit of $2,000 for withdrawals via the Lightning Network to ensure a smooth user experience, with transaction fees significantly lower than traditional methods. The rollout will initially be limited to certain regions, with plans to expand based on user feedback and network liquidity. This integration is expected to foster broader adoption of Bitcoin for payments, aligning with Coinbase’s goal of increasing economic freedom worldwide.
