Lightspark mentioned that teaming up with Coinbase will help move more transactions away from Bitcoin’s main network, where fees have gone up a lot in the past year.
This partnership brings Coinbase closer to adding Bitcoin Lightning to its platform. Lightspark is led by David Marcus, a former president at PayPal, and focuses on Lightning solutions for businesses.
Coinbase Plans Bitcoin Lightning Integration
In a recent announcement on April 4th, Coinbase’s CEO Brian Armstrong indicated that the integration of the Bitcoin layer-2 network is on the horizon, promising that it will happen “soon.” This move aims to offer the platform’s vast user base of 108 million people the opportunity to utilize potentially faster and cheaper Bitcoin transactions.
Source: Brian Armstrong
According to Lightspark, a Lightning solution provider, this integration will involve “lighting up all Coinbase touchpoints with Lightning,” shifting more transaction activity to Bitcoin’s second layer. This shift is expected to address the recent surge in fees experienced on Bitcoin’s main network.
Although Armstrong had confirmed Coinbase’s intention to integrate Bitcoin Lightning as far back as last September, details regarding the implementation process and timeline have remained scarce.
Lightspark: Simplifying Lightning Network
Established in 2022, Lightspark has focused its endeavors on simplifying the process of setting up and managing a Lightning node for reliable transaction sending and receiving.
Additionally, the company developed Lightspark Predict, an artificial intelligence-driven smart engine designed to enhance liquidity management and routing efficiency in real-time. This optimization aims to maximize transaction success rates and minimize finality times.
Source: Christian Catalini
According to insights from Bitcoin financial services firm River, Lightning payments demonstrate an impressive success rate of approximately 99.7%. This statistic is based on the analysis of 308,000 Lightning transactions conducted on River’s platform in October of the previous year.
Lightning Network Adoption
Lightning Network transactions sometimes face a challenge: they can fail when there isn’t enough money available to complete them. However, a study by River found that the average Lightning transaction is about 44,700 satoshis, or $11.84.
In September, it was estimated that there were between 279,000 and 1.1 million people actively using Lightning Network. This shows that more and more people are starting to use Lightning for their transactions.
Last July, Binance, a big competitor of Coinbase, added Bitcoin Lightning to its platform. This move indicates that Lightning technology is becoming more popular among cryptocurrency exchanges.
Lightning has become popular for payments in different places, such as Lugano in Switzerland, El Zonte in El Salvador (known as “Bitcoin Beach”), and Utiva in Costa Rica (known as “Bitcoin Jungle”).
Despite Lightning’s growing popularity, some big supporters of Bitcoin, like Michael Saylor and other experts, believe that Bitcoin is better as a way to save money rather than being used for everyday purchases. They think Bitcoin should be seen more as a store of value than a way to buy things regularly.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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