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Coinbase, the premier cryptocurrency exchange in the U.S. by trading volume, has initiated support for the Lightning Network starting today. This development introduces a more rapid and cost-effective method for its users to transact with bitcoin. Users now have the option to send, receive, or make payments in bitcoin directly from their accounts, mirroring the capabilities provided by other exchanges like Bitfinex, Kraken, and Binance.
Coinbase Launches Lightning Network Support to Enhance Bitcoin Transactions
Historically, transactions on Coinbase required on-chain processing, which could last between ten minutes to two hours and incur substantial fees during periods of heightened network activity. The Lightning Network, established in 2017 as a Layer 2 protocol atop the Bitcoin blockchain, was designed to alleviate scalability challenges. It achieves this through bi-directional payment channels that facilitate instant transactions with minimal fees, without needing immediate settlement on the blockchain.
Viktor Bunin, Coinbase’s protocol specialist and the lead on the Lightning integration, expressed his enthusiasm about the launch. He remarked that,
Growing Bitcoin adoption increases economic freedom globally. I’m thrilled that our Lightning integration is live to make Bitcoin more useful and accessible worldwide.
This integration, according to Bunin, marks a significant milestone in enhancing BTC payments’ efficiency through their partnership with Lightspark.
A Quicker and More Cost-Effective Way for Users to Send, Receive, and Pay with Bitcoin
Lightning Network fees comprise a minimal base fee of one satoshi—the smallest bitcoin unit valued at under one cent—and a variable liquidity provider fee. Node operators have the discretion to set their fees, balancing the need to compensate for the liquidity they lock up. Bunin disclosed that Coinbase imposes a modest 0.1% processing fee for Lightning transactions, which are completed within seconds. Initially, withdrawals are capped at $2,000, translating to a maximum fee of $2. Bunin explained that this conservative cap is intended to ensure high payment success rates, which typically decrease as transaction sizes increase.
In terms of cost-efficiency, the integration significantly reduces the expense for global bitcoin transfers via Coinbase, now 20 times lower than the typical 2% fee on credit card transactions and considerably less than the $30 typically charged for wire transfers. Although the Lightning option is not available in all regions, Bunin noted that support is being rolled out selectively based on specific cases.
Coinbase and Lightspark Partnership: Enhancing Crypto Transactions with Lightning Network
For the technical aspect of the integration, Coinbase partnered with Lightspark, a firm specializing in Lightning Network infrastructure, led by CEO David Marcus, former executive at PayPal and Meta. The decision to collaborate was announced on April 3, with Marcus highlighting it as a significant step for the Lightning Network. Bunin emphasized the benefits of choosing a non-custodial integration partner like Lightspark, which focuses intensely on optimizing channel liquidity management and routing success rates, allowing Coinbase to concentrate on securing user assets and enhancing the user experience.
Despite the integration, there are no immediate plans to incorporate Lightning into Coinbase Wallet or other services, as confirmed by Bunin. The decision will depend on the network’s growth and user adoption. He commented on the comparative adoption rates of Layer 2 protocols, noting significant traction in ecosystems outside Bitcoin, and projected an overall increase in Layer 2 usage as consumers seek faster, cheaper transaction options.
The reason for the delayed Coinbase Lightning Network integration support
The rollout of Lightning Network support by Coinbase follows several of its competitors, with Bitfinex introducing support in 2019, OKX in 2021, Kraken in 2022, and Binance in July 2023. Bunin explained that the timing of Coinbase’s integration was influenced by the need to observe the Layer 2’s growth and technological maturity before adoption.
This strategic move by Coinbase aligns with its mission to enhance economic freedom worldwide by facilitating more accessible and efficient Bitcoin transactions, signaling a robust future for Bitcoin’s utility and adoption.
Starting today, support for the Lightning Network via @lightspark will begin rolling out.
Enjoy instant, low-cost BTC transfers.
Learn more: https://t.co/6YPiWgIyyf pic.twitter.com/ufOhO7Qe7i
— Coinbase 🛡️ (@coinbase) April 30, 2024
Dogeverse: A New Multichain Meme Coin
Dogeverse stands out in the cryptocurrency landscape as a multichain meme coin with a unique interoperability across several blockchains, including Ethereum, BNB Chain, Polygon, Base, Solana, and Avalanche. Featuring Cosmo the Shiba Inu as its mascot, Dogeverse aims to bridge the gaps between different blockchain communities, offering wider accessibility and fostering a unified ecosystem.
The token operates on multiple chains, attracting a diverse user base by leveraging each chain’s strengths, from affordability to innovation. Integrations like Wormhole and PortalBridge enhance community connectivity, potentially positioning Dogeverse as a unifying symbol in the blockchain world.
The presale of Dogeverse tokens is structured into ten stages, with prices ranging from $0.0000290 to $0.000299. It has a total supply of 200 billion tokens, with 30 billion dedicated to the presale. Within a day, the presale garnered over $300,000, indicating strong market interest. The project’s lore and the mystique surrounding Cosmo contribute to its appeal, suggesting a potential to transcend its meme coin origins. For more information or to participate in the presale, visit thedogeverse.com.
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