{"id":16504,"date":"2023-05-09T04:19:47","date_gmt":"2023-05-09T08:19:47","guid":{"rendered":"https:\/\/demo2.dedicatedhost247.com\/crypto\/binance-announces-lightning-network-withdrawal-implementation-amidst-bitcoin-network-congestion-issues-exchanges-bitcoin-news\/"},"modified":"2023-05-09T04:19:47","modified_gmt":"2023-05-09T08:19:47","slug":"binance-announces-lightning-network-withdrawal-implementation-amidst-bitcoin-network-congestion-issues-exchanges-bitcoin-news","status":"publish","type":"post","link":"https:\/\/demo2.dedicatedhost247.com\/crypto\/binance-announces-lightning-network-withdrawal-implementation-amidst-bitcoin-network-congestion-issues-exchanges-bitcoin-news\/","title":{"rendered":"Binance Announces Lightning Network Withdrawal Implementation Amidst Bitcoin Network Congestion Issues \u2013 Exchanges Bitcoin News"},"content":{"rendered":"


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Binance has announced its intention of implementing Lightning Network, a layer 2 Bitcoin scaling protocol, on its platform after experiencing an episode of congestion regarding withdrawals on the Bitcoin network. The exchange had to pause bitcoin withdrawals twice due to a large backlog of operations stuck as a consequence of high transaction fees.<\/strong><\/p>\n

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Binance Announces It Is Working on Implementing Lightning Network Withdrawals<\/h2>\n

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Leading cryptocurrency exchange Binance has recently announced it is working to integrate Lightning Network, a bitcoin-based scaling solution, into its platform. The exchange made the announcement after having to pause bitcoin withdrawals twice in a single day due to network congestion.<\/p>\n

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The congestion issue Binance referred to had to do with the rise<\/a> of BRC-20 tokens, which are issued on top of the Bitcoin blockchain, and have overwhelmed the BTC<\/a> mempool, having more than 450,000 transactions pending with fees of $13 dollars at the time of writing, according to blockchain data<\/a>.<\/p>\n

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The implementation of Lightning Network withdrawals would allow users to have the option of sidestepping the high fees collected by the BTC<\/a> network when experiencing this kind of congestion. Binance announced<\/a> that, besides starting to work on this implementation, it would adjust its withdrawal fees to avoid facing this issue in the future and that it would continue to monitor the situation, adjusting fees accordingly.<\/p>\n

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Also, Binance stated<\/a>:<\/p>\n

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This is a learning opportunity for us and we\u2019ll do our best to prevent this from happening again.<\/p>\n

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Addressing BTC<\/a> Outflow Rumors<\/h2>\n

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On May 7, the exchange paused<\/a> BTC<\/a> withdrawals for the first time, stating that it was \u201cexperiencing a congestion issue,\u201d and that the Binance team was \u201ccurrently working on a fix until the network is stabilized\u201d vowing to reopen withdrawals as soon as possible.<\/p>\n

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Shortly after, bitcoin withdrawals were reopened only to be suspended<\/a> once again due to \u201cthe large volume of pending transactions\u201d the exchange had. This situation prompted the diffusion of messages regarding large outflows coming from the directions associated with Binance. Changpeng \u2018CZ\u2019 Zhao, CEO of Binance, dismissed<\/a> these reports as FUD on social media.<\/p>\n

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Binance clarified<\/a> that the outflows were \u201cactually movements between Binance hot and cold wallets due to the BTC<\/a> address adjustments\u201d and that the reports were mistakenly identifying the wallets of the exchange as belonging to others.<\/p>\n

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What do you think about Binance\u2019s announcement of the implementation of the Lightning Network for withdrawals? Tell us in the comments section below. <\/strong><\/em><\/p>\n

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\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Iryna Budanova \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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