Cryptocurrency Exchange OKCoin has announced that it will integrate Bitcoin’s Lightning network to provide users with faster, cheaper transfers by running a Lightning node that can route transactions to other nodes on the network. The integration is expected to be completed in three to four weeks.
In an approved version Bitcoin MagazineOKCoin said this would cut Bitcoin transaction fees from around $ 10 to around 1 cent and reduce deposit and withdrawal times from 10 to 60 minutes to seconds.
“The Lightning Network, like Bitcoin, requires a network of nodes and the introduction of the technology to achieve the best possible performance,” Hong Fang, CEO of OKCoin, said in the press release. “As part of our analysis of the technology, we assessed the strength and quality of the nodes and now we believe the network is strong enough to participate as an exchange with a high volume of withdrawals and deposits per day.”
In addition to the efficiency benefits to be realized by users, OKCoin stated that the decision was motivated by a desire to encourage Bitcoin development.
“We’ve been a bitcoin exchange since 2013 and while we’re excited about DeFi and other assets, we know that bitcoin is the bedrock of the entire industry,” the press release said. “Bitcoin’s network is often congested and has high transaction fees, especially during bull markets. This removes this problem and opens up the possibility of micro payments for Bitcoin trading. “
OKCoin also pointed out the privacy benefits that Lightning payments off-chain can bring to its users, highlighting the smaller transactions that the Lightning Network enables.
“We hope that other blockchain companies will follow suit and boost the entire industry by accelerating bitcoin payments,” said Fang.