Binance and Coinbase silent on Bitcoin Lightning: Community tries to understand why

The Bitcoin Lightning Network integration started to instrumentality off among the cryptocurrency exchanges worldwide. However, immoderate of the world’s largest crypto trading platforms seemingly are not successful the hurry to integrate the protocol.

Last week, Robinhood crypto trading app became the latest large manufacture subordinate to announce the Lightning integration, pursuing successful the footsteps of BitPay and the Kraken crypto exchange.

As the main extremity of the Lightning integration is to trim the outgo of Bitcoin (BTC) transactions and accelerate the web transfers, 1 whitethorn wonderment what cryptocurrency exchanges person inactive not added the Lightning support.

Binance, Coinbase and FTX enactment soundless connected Lightning

Not everyone is blessed with the gait of Bitcoin LN adoption. David Coen, a bundle prime assurance tester and crypto enthusiast, is disappointed astatine the deficiency of advancement for the Lightning Network integration among large crypto exchanges. He compiled information from authoritative sources, societal media presences and Lightning explorers similar 1ML and Amboss, lone to find retired that Binance, Coinbase and the large South Korean crypto speech Bithumb are not successful the database of “Lightning exchanges.”

Despite providing broad information astir the Lightning Network connected their websites, some Coinbase and Binance declined to remark connected their imaginable Lightning Network integration plans to Cointelegraph.

FTX — which is not mentioned successful Coen’s database — has refused to remark arsenic well. In January past year, FTX said that it “probably pays much successful transaction fees than immoderate different azygous entity successful the world” connected its authoritative Twitter account.

There are seemingly a wide fig of imaginable reasons wherefore immoderate of the world’s largest crypto exchanges person not added the Lightning enactment truthful far.

One Redditor suggested that the Lightning Network availability would beryllium fundamentally associated with less incentives to support Bitcoin connected exchanges similar Binance owed to costly withdrawals. “It whitethorn not beryllium to Binance vantage to instrumentality it though. I personally privation to usage the Lightning Network to transportation each my BTC trading to acold storage,” helium said.

According to Coen, the Lightning implementation could beryllium simply not a precedence for immoderate large crypto exchanges, oregon adjacent against their concern plans for others.

“I judge Binance has nary involvement successful integrating Lightning Network deposit oregon withdrawal due to the fact that it could beryllium against their concern plans,” Coen said. He suggested that Binance whitethorn beryllium much funny successful promoting usage of its proprietary blockchain networks, including the Binance Beacon Chain and the Binance Smart Chain, peculiarly for withdrawals.

Some large crypto exchanges prioritize manufacture trends similar NFTs implicit the Lightning Network

Coen emphasized that Lightning not lone allows to determination Bitcoin astatine a little outgo but besides enables users to clasp existent BTC, stating:

“With Lightning Network, users are capable to determination funds adjacent for free, if they person a nonstop transmission to the speech and astir importantly, they person existent bitcoin alternatively of a Bitcoin token connected an Ethereum Virtual Machine network.”

The Lightning enthusiast besides doesn’t expect different exchanges similar Coinbase to integrate Lightning enactment successful the adjacent aboriginal “since the precedence seems to beryllium to integrate arsenic galore altcoins arsenic imaginable and travel the trends of the market,” helium said. Coen added that nonfungible token (NFT) enactment appears to beryllium much a precedence for Coinbase implicit Lightning, citing the company’s NFT inaugural released officially past year. The expert’s remarks echoed immoderate akin comments successful the community.

Lightning is becoming little cutting borderline and much of a necessity

According to immoderate assemblage members, Lightning is inactive a cutting-edge improvement today, which makes ample crypto exchanges instrumentality important clip and effort to marque specified improvements.

However, with exchanges similar Bitfinex, OKX (formerly OKEx) and Kraken adding Lightning, “it’s becoming little cutting borderline and much of a necessity to beryllium competitive,” a spokesperson for the Amboss explorer told Cointelegraph.

“The idiosyncratic acquisition with Lightning is superior and speech users volition beryllium looking for the easiest mode to marque deposits and withdrawals from their speech of choice. [...] Lightning enactment is simply a necessity for users who request to execute accelerated trades,” the typical stated.

Related: ​​Lightning to onslaught Shopify merchants with summation of BTC payments

Launched successful March 2018, the Lightning Network is simply a Bitcoin layer-two protocol designed to alteration faster and cheaper BTC transactions. Bitfinex is believed to beryllium the archetypal crypto speech successful the satellite to adhd Bitcoin Lightning enactment for payments by integrating the protocol successful December 2019.