OKEx to accelerate Bitcoin transactions with Lightning Network

OKEx to speed up Bitcoin transactions with Lightning Community

International cryptocurrency trade OKEx is shifting to cheaper and quicker Bitcoin (BTC) transactions with its upcoming Lightning Community integration.

Based on a Feb. 2 announcement, OKEx’s Bitcoin Lightning Community can be built-in “within the coming quarter,” making OKEx a participant node within the Lightning Community.

The combination will permit OKEx customers to pick the Lightning Community choice when depositing and withdrawing BTC, desiring to lower transaction charges and instances.

The Lightning Community is a second-layer scaling answer and cost protocol based mostly on high of the Bitcoin blockchain. The protocol was advised by Joseph Poon and Thaddeus Dryja in 2015 in an effort to resolve Bitcoin’s scalability downside. Based on knowledge from crypto analytics web site BitInfoCharts, the typical Bitcoin transaction charge amounted to greater than $15 on Feb. 1.

Because the Lightning Community isn’t a blockchain itself however quite a secondary layer, the answer was initially principally used for small and even microtransactions Bitcoin transactions. To resolve this downside, Lightning Labs launched so-called “Wumbo” channels in August 2020 so as to make it doable for nodes to service bigger transactions whereas lowering on-chain charges. The phrase Wumbo, which apparently means “giant”, is a reference to an episode of SpongeBob SquarePants. These channels are so named as a result of they’re bigger than the 0.1677 BTC ($5,800) restrict.

OKEx isn’t the one crypto trade to begin experimenting with the Bitcoin Lightning Community. In July 2019, European crypto trade Bitstamp arrange its personal Lightning Community node to spice up the community’s capabilities. One other international trade, Bitfinex, reportedly turned the primary crypto trade to allow Lightning funds in December 2019. In September 2020, Bitfinex introduced assist of Lightning Community’s Wumbo channels to allow their clients to deposit and withdraw giant quantities of Bitcoin.

Amid Lightning Labs increasing the Lightning Community’s capabilities, extra crypto exchanges have moved to combine the protocol in latest months. In December 2020, main United States-based crypto trade Kraken introduced that it too will combine the Bitcoin Lightning Community in 2021. OKCoin additionally just lately introduced its plans to combine the community in Q1 of 2021.