Crypto News

Kraken announces Lightning Network integrations for 2021

Kraken will integrate the Lightning Network to support instant Bitcoin transfers and reduced withdrawal fees.

Major U.S.-based cryptocurrency exchange Kraken has announced on Wednesday that it will integrate the Bitcoin (BTC) Lightning Network in 2021. Kraken emphasized that the integration will drive significant improvements in speed and fees, claiming Lightning allows Bitcoin “to process millions of transactions per second.”

Speaking to Cointelegraph, Kraken’s lead Bitcoin strategist Pierre Rochard revealed that Lightning will first be integrated for withdrawals during the first half of 2021, bringing down transfer fees from roughly $10 per transaction to about one penny — just enough to prevent spam transactions — and allowing “instant” withdrawals.

Rochard noted that deposit functionality is slated to follow next. While deposits are already free on Kraken, the integration will also allow deposits to clear immediately — meaning that traders will not have to wait the approximately 30 minutes currently required for three confirmations on the Bitcoin blockchain. He said:

“We really think that this is going to benefit traders who value speed in a lot of the strategies that they employ.”

To facilitate the integration, Rochard emphasized that Kraken has committed to hiring a new team focused specifically on the Lightning Network, inviting interested parties to apply for the positions.

Lightning Network is a Bitcoin layer two protocol released in March 2018 following the network’s activation of Segregated Witness in the previous year.

The protocol seeks to reduce the number of transactions that are stored on the blockchain by using smart contract “payment channels” to facilitate transactions between individual users. The final balances can be broadcast to the Bitcoin blockchain for settlement.

According to DeFi Pulse, the total value locked in the Lightning Network is currently pushing into new all-time highs of roughly $21 million.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of CoinChapter and CoinChapter does not assume any responsibility or liability for the same.

(This story has not been edited by CoinChapter staff and is auto-generated from a syndicated feed.)
0 Comments
Inline Feedbacks
View all comments
CoinChapter

Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.

Related Crypto News

Grayscale Loses $4.1 Billion In Crypto Following Bitcoin Price Drop
Grayscale losses big as Bitcoin price dropped down to the $44,900 range. Grayscale total amount of crypto assets under...
Binance’s BNB Coughs Out Massive Intraday Gains as Bitcoin Recovers
BNB pared a huge portion of the losses it faced earlier this week amid a broader recovery across the...
Brave To Add DEX Aggregator, NTF Wallet In Next Browser
Privacy-focused web browser Brave plans to launch a new NFT wallet that will integrate DEX aggregator with non-fungible token...
MicroStrategy Purchases Additional 19,452 Bitcoin Valued At Over $1 Billion
Business intelligence firm MicroStrategy announced that it has increased its Bitcoin holdings by 27% after purchasing an additional 19,452...
Make Following Crypto Easy On Your Coinbench HomePage
With the crypto industry growing at a massive rate, it is becoming more and more difficult to keep up...
Square Invests Another $170 Million In Bitcoin
Surging interest in trading among Square Cash App customers helped revenue more than double in the fourth quarter. The...

Featured Crypto News

Grayscale Loses $4.1 Billion In Crypto Following Bitcoin Price Drop
Grayscale losses big as Bitcoin price dropped down to the $44,900 range. Grayscale total amount of crypto assets under...
Binance’s BNB Coughs Out Massive Intraday Gains as Bitcoin Recovers
BNB pared a huge portion of the losses it faced earlier this week amid a broader recovery across the...
Brave To Add DEX Aggregator, NTF Wallet In Next Browser
Privacy-focused web browser Brave plans to launch a new NFT wallet that will integrate DEX aggregator with non-fungible token...
MicroStrategy Purchases Additional 19,452 Bitcoin Valued At Over $1 Billion
Business intelligence firm MicroStrategy announced that it has increased its Bitcoin holdings by 27% after purchasing an additional 19,452...
Square Invests Another $170 Million In Bitcoin
Surging interest in trading among Square Cash App customers helped revenue more than double in the fourth quarter. The...
MicroStrategy’s Michael Saylor Believes Bitcoin Will One Day Reach A $100 Trillion Market Value
The price of Bitcoin fell below $50,000 on Tuesday, taking its market value back below $1 trillion. Just last...