The Bitcoin lightning network makes it possible for BTC to become an effective medium of payments. It’s really fast, has a high bandwidth, and is very cheap. But the problem with the lightning network is adoption. Most platforms still lack support for the network, which makes it impractical to transact with Bitcoin using them. However, for major exchanges, the first step is taken as Kraken has finally implemented the Bitcoin lightning network.
The Bitcoin lightning network on Kraken
Some Users have been reporting that the Kraken exchange has added lightning network support to their platform. They announced their plans to bring the feature back in 2020; however, after multiple delays, it’s finally here. For enthusiasts, using Kraken exchange has a clear upside now as compared to Binance, FTX, or Coinbase.
It's official! @krakenfx has implemented the Lightning Network.
Congrats @jespow, @brianchoffman, @BitcoinIsSaving and the rest of the Kraken guys.
(Screw Dan Held though ?) https://t.co/tF5CP7JB5A pic.twitter.com/6LikdzdJ18
— MrHodl⚡️??? DBA BitcoinT.I.N.A (@MrHodl) March 29, 2022
Not everyone has still received the feature. So, it seems Kraken will be rolling it out as they see it performing efficiently. In the above tweet, you can see that the minimum transaction amount of BTC and the transaction fees are so less than anyone can afford to transact using crypto now. The capacity for the lightning network node of the exchange is 28 Bitcoins. Kraken has always wanted to stay on top of innovation as a crypto platform, and this made the integration of the lightning network critical for the experience they offer, said a representative of the company.
More about the lightning network
The Lightning Network is based on the blockchain’s underlying technology. It is feasible to construct a secure network of participants capable of transacting at high volume and speed by leveraging genuine Bitcoin/blockchain transactions and its native smart-contract programming language.
Payments on the blockchain are lightning quick without the need to wait for block confirmation. Without generating an on-blockchain transaction for each payment, security is guaranteed through blockchain smart contracts. The speed of payment is measured in milliseconds or seconds.
The network can handle millions to billions of transactions per second. By several orders of magnitude, capacity outperforms older payment rails. Payment per action/click may now be attached without the use of custodians. It is also extremely cheap to use, which we have seen above.
What are your thoughts as Kraken has implemented the Bitcoin lightning network? And do you plan to try it out? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
