OKCoin, a leading cryptocurrency exchange, is driving further for mainstream adoption of the Lightning Network. It was launched earlier in 2018 to resolve Bitcoin’s scalability problem. OKCoin said today in a blog post that it will combine the Bitcoin Lightning Network in Q1 2021. It elucidates that it enables users to deposit and withdraw money quicker and transfer larger transactions.
OKCoin highlights that the scaling technology will drive prominent enhancements in speed and fees. It asserted that its consumers will be capable of confirming transactions in a few seconds rather than up to an hour recently needed for three confirmations on Bitcoin blockchain. The integration will also decrease OKCoin’s minimum withdrawal or deposit from 0.001 Bitcoin (~$35) to 0.000001 Bitcoin (~$0.04). However, there is presently a maximum limit per transaction of 0.05 BTC (~$18,000).
OKCoin to integrate Bitcoin’s Lightning Network in Q1 2021
Further, the Lightning network integration enables crypto dealers to profit from larger transactions and higher volumes. Thus, reducing fees that developed many small channels. Thaddeus Dryja and Joseph Poon first introduced the Lightning Network to build a layer on top of the original blockchain. It aims to enhance transaction speed while prominently decreasing expenses. Earlier, Lightning developers deliberately combined the limitations to shield users from draining too much money into the nascent network.
Moreover, OKCoin becomes the latest exchange to join the expanding list of exchanges integrating the Lightning network. Some of the exchanges involve Bitfinex, Kraken, and CoinCorner. They have all added or announced support plans. According to OKCoin’s CEO, Hong Fang, the integration came amidst an expanding number of nodes on the platform and increased Bitcoin prices, which has developed transaction fees.
Hong Fang hopes that other companies also adopt the Lightning network. If consumers broadly employ various exchanges, main chain transaction fees would fall, too, growing the Bitcoin Blockchain’s utility. Fang continued that while she understands it will take time to embrace the Lightning Network , she stated that she feels optimistic and constructive about developing this second layer on top of Bitcoin.
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