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The world’s largest crypto exchange is going to start using the Lightning Network.
What’s happening:
- Coinbase (NASDAQ: COIN) has announced they will integrate the layer 2 protocol Lightning Network to enable faster and cheaper Bitcoin transactions
- Lightning Network has risen to incredible popularity for its ability to enable rapid payments and transfers across the Bitcoin network
Why it matters:
- Previously, it was speculated no major exchanges would integrate Lightning Network as it goes against the incentives of the exchanges to make fees
- Michael Saylor and Jack Dorsey, two prominent voices in the Bitcoin community, had been outspoken with recent critiques of Coinbase not already adopting Lightning Network
Going deeper:
- Lightning Network was purpose built to solve some of Bitcoin’s scaling issues and to give it the opportunity to be used for global, cross border payments
- Many have argued that the Lightning Network represents the best chance possible of Bitcoin becoming more than an investment or speculation vehicle
- The former president of PayPal (NASDAQ: PYPL) recently said he believes the Lightning Network could disrupt the difficult and complex process of cross border payments
- Earlier this summer, global crypto exchange Binance also adopted Lightning Network and says they have plans to continue to support the layer 2 protocol
