In an effort to help speed the usage of bitcoin as a means of exchange, Kraken has incorporated Lightning Network to give clients fast settlement of bitcoin transactions.
The Lightning Network is a layer-2 scalability solution built on top of the Bitcoin blockchain that allows users to send and receive BTC with almost no fees.
Kraken is offering core network services that enable the Lightning network to route payments, in addition to enabling rapid and low-cost deposits and withdrawals.” “Overall, we hope our integration signals to the broader industry our support for Lightning.”
According to the business, the network can process millions of transactions every second, compared to Visa’s 65,000 transactions per second.
According to a blog post published on April 1 by Kraken, its system of payment channels does not broadcast intermediate transactions to the blockchain while they are open, instead of keeping them off-chain to enable rapid and efficient value transfer. The multi-signature and time-locking aspects of the Bitcoin blockchain keep these off-chain routes secure.
Pierre Rochard, Kraken’s bitcoin product manager, said, “Bitcoin has proven to be a successful store of value over the previous decade and is now seeing greater use as a borderless global currency.” “The Lightning Network offers real-time Bitcoin payment settlement, a greater capacity than any other system, and microtransactions at scale for the first time.”
After announcing in December 2020 that clients would be able to withdraw and deposit bitcoin on Lightning-Network in the first half of 2021, Kraken has now completed the integration.
At the time, the crypto exchange announced that it will be employing a team dedicated to the network. “Easier deposits and withdrawals are just the beginning of the many capabilities we are hoping to give,” the blog post read.
The Lightning connection took longer than expected due to Kraken’s “fast expansion,” according to the representative, who said that the exchange witnessed trading volumes across all markets reach all-time highs and its client base double in 2021.
Layer-2 solutions, according to Matthew Gould, founder, and CEO of Unstoppable Domains, are a significant element of improving digital assets’ usability, making it easier for the general public to embrace and transact with digital currencies.
“The Lightning Network is a lifeline for Bitcoin scaling, and this is a large-scale test for the network,” said Colin Pape, founder of decentralized search engine Presearch.
“I hope Kraken’s integration serves as proof of the Lightning Network’s authenticity and as a consideration for other exchanges because the success of Bitcoin is the success of the digital-asset space as a whole.”
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