Coinbase Finally Integrates The Bitcoin Lightning Network

Coinbase has recently integrated support for the Bitcoin Lightning Network, a solution facilitating faster and more affordable BTC transactions. Despite its inception in 2017, Coinbase has just now embraced this enhancement to its platform. The incorporation of this new technology is facilitated by Lightspark, a company within the Lightning Network ecosystem founded by David Marcus.

Utilizing Lightspark

Following the announcement, Coinbase CEO Brian Armstrong expressed enthusiasm about joining the Bitcoin Lightning Network, aiming to achieve transactions under one second and costing just one cent, thus ushering in broader adoption. In this integration, Coinbase employs remote-key signing implementation, which is associated with Lightspark, with Coinbase exclusively managing the signing keys while Lightspark operates its node.

The intention to integrate the Lightning Network was disclosed by Protocol Specialist Viktor Bunin in September 2023. Since then, according to Bunin, Coinbase has been assessing the potential and hurdles associated with this technology. Despite the delay, this addition shows that Coinbase is dedicated to remaining at the forefront of technological advancements in the cryptocurrency sector.

A Much Needed Integration

The Lightning Network functions as a payment solution layered atop Bitcoin, utilizing BTC transactions and time-locks to establish nodes and channels that facilitate cost-effective and rapid transactions. While conventional Bitcoin transactions often require a minimum of ten minutes for confirmation on the Bitcoin base layer, this solution reduces the wait time to mere seconds and significantly lowers transaction fees. Now, eight months later, this implementation is accessible to millions of Coinbase users.

David Marcus, CEO of Lightspark, expressed excitement about collaborating to introduce the Bitcoin Lightning Network to hundreds of millions of people across more than 100 countries. This milestone marks a significant advancement for the entire network as well as for Bitcoin as a whole.