Binance will use Lightning Network nodes to improve Bitcoin transactions.

On June 20, the cryptocurrency exchange Binance announced that it had started operating nodes on the Bitcoin Lightning Network as an important step toward integrating it for deposits and withdrawals.

In a tweet, Binance recognized users who noticed their new Lightning nodes and confirmed their presence. However, Binance emphasized that additional technical work needs to be done before the Lightning integration is fully implemented, promising to provide updates along the way.

#Binance is working to integrate the #Bitcoin Lightning Network for deposits and withdrawals. Some eagle-eyed users spotted our new lightning nodes recently. Yes – that’s us! However, there’s still more tech work to be done. We’ll update once Lightning is fully integrated. https://t.co/N0oN8561sN

— Binance (@binance) June 20, 2023

In response to the congestion experienced on the Bitcoin (BTC) network on May 7, Binance announced its plans to incorporate the Lightning Network to alleviate bottlenecks. In a tweet, Binance mentioned its ongoing efforts to enable BTC Lightning Network withdrawals, recognizing its potential in such situations. The increased congestion was mainly caused by a surge in BRC-20 transactions, with the popularity of memecoins being a contributing factor.

The Bitcoin Lightning Network is a layer-two protocol built on the Bitcoin blockchain to address scalability issues. It allows participants to create payment channels, conduct off-chain transactions quickly and inexpensively, and settle the channels on the Bitcoin blockchain when necessary. The Lightning Network aims to enhance the speed, scalability, and privacy of Bitcoin transactions, making it more efficient for microtransactions while reducing fees and congestion on the main network.

Related: Binance’s BNB Chain introduces layer-2 testnet powered by Optimism

Recently, Binance has been involved in a legal battle with the United States Securities and Exchange Commission (SEC), causing a period of uncertainty for the company. However, there is a sense of relief after Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia approved a consent agreement between Binance, Binance.US and the SEC. The agreement effectively dismissed a temporary restraining order filed by the SEC that would have frozen all Binance.US assets.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

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