Key Takeaways:
- Coinbase is partnering with Lightspark to integrate Bitcoin Lightning Network into its services, aiming to offer its 108 million users more efficient and cost-effective Bitcoin transactions.
- Lightspark, led by former PayPal president David Marcus, focuses on relieving the Bitcoin base layer’s burden by encouraging use of the Lightning Network, which facilitates faster transactions and lower fees.
- The Lightning Network’s adoption is growing, with success rates of about 99.7% for transactions, as companies like Binance also embrace the technology, demonstrating its increasing acceptance across the cryptocurrency industry.
Coinbase is advancing its cryptocurrency payment capabilities by partnering with Lightspark, a company focused on enhancing Bitcoin transactions through the Lightning Network.
Lightspark, under the guidance of ex-PayPal president David Marcus, is set to facilitate a shift in transaction processes away from the Bitcoin main layer, which has seen a significant increase in fees over the past year.
Has been great working with @lightspark on our Lightning integration which should be launching soon 🙏 https://t.co/KP2CRWZBRw
— Brian Armstrong (@brian_armstrong) April 3, 2024
This collaboration positions Coinbase on the brink of incorporating Bitcoin Lightning into its services, aiming to enrich the transaction experience for its vast user base of 108 million.
According to Brian Armstrong, Coinbase’s CEO, this integration will be rolled out soon, offering users access to more efficient and cost-effective Bitcoin transactions.
BREAKING: Coinbase is working with Lightspark to integrate the #Bitcoin Lightning Network for all its customers ⚡️ pic.twitter.com/Yf9Jb4iKZ1
— Bitcoin Magazine (@BitcoinMagazine) April 3, 2024
Lightspark’s initiative is to ease the burden on Bitcoin’s base layer by promoting more activity on the Lightning Network, which is designed to provide faster transaction speeds and lower fees.
Although Armstrong had hinted at integrating Bitcoin Lightning into Coinbase as early as last September, details on the implementation remained sparse until now.
Despite reaching out, Coinbase has yet to respond with further comments on the matter.
We’re excited to share that @Coinbase has selected @Lightspark to bring the Lightning Network to all its customers, promising near-instant, cheaper Bitcoin transactions. Read more here: https://t.co/PaxyhKMZtv pic.twitter.com/MoEENtjElm
— Lightspark (@lightspark) April 3, 2024
Established in 2022, Lightspark has dedicated itself to simplifying the use of Lightning nodes, ensuring reliable transaction capabilities.
Additionally, the company has developed Lightspark Predict, an AI-driven tool aimed at optimizing liquidity and routing for Lightning transactions, thereby enhancing their success rate and efficiency.
JUST IN: Coinbase partners with Lightspark to integrate #Bitcoin Lightning Network.
— Watcher.Guru (@WatcherGuru) April 3, 2024
Bitcoin financial services company River has reported a success rate of approximately 99.7% for Lightning transactions, based on data from over 300,000 transactions.
The primary challenge for unsuccessful transactions is the lack of sufficient liquidity to complete the payment.
As of last September, it’s estimated that the number of active Lightning Network users ranges between 279,000 and 1.1 million.
Thrilled to announce that @Coinbase has selected @Lightspark to enable the #Bitcoin Lightning Network across its platform and services. Yet another significant milestone for Lightning! ⚡to many millions of new people and 100+ countries coming soon! https://t.co/Dj5JDqdmOl
— David Marcus (@davidmarcus) April 3, 2024
Notably, Coinbase’s main rival, Binance, has also adopted Bitcoin Lightning, highlighting the growing acceptance of this technology across the industry.
The Lightning Network has gained popularity in various global locations, including Lugano in Switzerland, El Zonte in El Salvador (also known as Bitcoin Beach), and Utiva in Costa Rica (Bitcoin Jungle).
Coinbase partners with Lightspark to bring the #bitcoin Lightning Network to their application pic.twitter.com/J4bgG0KZZj
— CryptoSavingExpert ® (@CryptoSavingExp) April 3, 2024
Despite its growing use for transactions, some industry experts, like Michael Saylor, argue that Bitcoin should primarily serve as a store of value rather than a medium of exchange.
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