After numerous promises by Coinbase CEO Brian Armstrong, the US-based crypto exchange is finally making strides towards integrating the Bitcoin Lightning network. In a recent statement on April 3rd, Lightspark, a lightning network-based payment infrastructure provider, announced that they were selected by Coinbase to assist with the integration process.
As part of the partnership, Coinbase will be utilizing Lightspark’s remote-key signing implementation. This innovative approach allows Coinbase to maintain control of the Lightning signing keys, while Lightspark manages the Lightning node infrastructure. This cooperative model ensures smooth operations without overwhelming Coinbase’s team with the complexities of a large-scale implementation.
The integration with Lightspark provides several advantages for Coinbase. It allows the exchange to leverage Lightspark’s established node infrastructure, freeing up their team to focus on customer-centric initiatives. Additionally, by enhancing scalability and transaction efficiency, this collaboration will have a positive impact on the Bitcoin network. It also sets the stage for future use cases by providing liquidity to the network.
Shan Aggarwal, Coinbase’s VP of Corporate & Business Development, expressed enthusiasm about the partnership, stating, “We’re excited to partner with Lightspark to eliminate payment barriers and enable faster and cheaper Bitcoin transactions through support for the Bitcoin Lightning Network.”
Over the past year, Coinbase has faced criticism from the crypto community for its delay in integrating the Lightning Network, especially as major competitors like Binance have already adopted the technology. In response to these concerns, Armstrong assured users that Coinbase would prioritize incorporating the Lightning Network to meet the growing demand for streamlined Bitcoin transactions in a time of escalating prices.
This new development marks a significant milestone for Coinbase and the broader crypto community as a whole. The integration of the Bitcoin Lightning Network demonstrates Coinbase’s commitment to innovation and addressing customer needs in a rapidly evolving industry. By partnering with Lightspark, Coinbase is poised to enhance transaction speed, reduce costs, and contribute to the overall growth and efficiency of the Bitcoin network. This move not only benefits Coinbase users but also has broader implications for the adoption and usability of Bitcoin as a leading cryptocurrency.
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