TL;DR Breakdown
- Crypto exchange OKEx now supports Bitcoin Lightning Network.
- The scaling solution will reduce cost and confirmation time for BTC transactions on the exchange.
Leading Malta-based cryptocurrency exchange OKEx has now joined the list of exchanges that support the Bitcoin Lightning Network. The integration of the Lightning Network was completed today, following the announcement on Monday. By supporting the BTC layer-2 scaling solution, OKEx customers can process cheaper and faster BTC transactions, although there will be limitations to this service, as compared to the main BTC network.
OKEx integrates Bitcoin Lightning Network
In February, the crypto exchange initially disclosed its plan to integrate the scaling solution, as transaction fees on the network became expensive for small users. At the moment, the BTC scaling solution is available on the exchange’s desktop website, while support for mobile is slated to happen at a later date. OKEx previously said Lightning Network could reduce the average cost of BTC transactions to “less than 0.01 cents,” and the average confirmation time to “1-3 seconds.”
The Bitcoin Lightning Network enables faster and cheaper transactions by “using bi-directional payment channels that are not settled on-chain in real-time.” However, the limitation of the network is that it’s designed for smaller transactions. Hence, OKEx users cannot receive or send large amounts of Bitcoin using this option. OKEx initially planned to place a maximum transaction limit of 0.05 BTC for the Bitcoin Lightning Network.
During press time, 0.05 BTC was worth $2,759.
“By integrating layer 2 solutions like the Lightning Network, OKEx is able to offer an improved trading experience to its users — with lower costs and faster transactions — alongside supporting the Bitcoin ecosystem by increasing the number of participating nodes,” the announcement reads.
BTC scaling solution
Crypto exchanges and BTC users are gradually adopting the layer-2 scaling solution. At present, major exchanges such as OKCoin, and Bitfinex, Bitstamp support the Lightning Network.
