Coinbase Embraces Lightning Network for Instant Bitcoin Transfers

Coinbase has announced the integration of the Bitcoin Lightning Network, offering users the option to choose Lightning or the traditional Bitcoin network for transactions. This integration enables faster and cheaper Bitcoin transfers compared to transactions on the Bitcoin blockchain. Lightning transactions are nearly instant, while Bitcoin network transfers may take anywhere from 10 minutes to 2 hours due to network congestion. However, Coinbase cautioned that Lightning transfers to certain self-custody wallets could take longer or fail due to various implementations or fee structures. The exchange will levy a processing fee of 0.1% of the transfer amount for senders. Coinbase partnered with Lightning payments solution provider Lightspark for this integration, led by former PayPal president David Marcus. The decision to integrate Lightning came after evaluating the network for years, with the goal of reducing on-chain payments to one second and costing $0.01. This move marks a significant milestone for both Coinbase and the Lightning Network, with many competitors like Binance, Kraken, and Bitfinex having already incorporated Lightning into their services in previous years.