Binance has announced the listing of BTC, a symbol for Bitcoin tokens, to its Lightning Network. Per the announcement, traders can begin depositing and withdrawing the token from the official page. The method, or the process, may vary slightly. Hence, it is recommended to give the learning material a thorough read before utilizing BTC on the Lightning Network.
First things first, what is Lightning Network? Simply put, Lightning Network is a layer-2 solution that enhances the scalability factor and has been built on top of Bitcoin Blockchain. The foundational architecture is what enables the Network to offer a transaction solution that is economical (if not cheap) and faster.
Lightning Network allows users to build off-chain transaction channels to make sure that transactions are indeed scalable.
The process to deposit to BTC on the Network is pretty easy. One can log in to their Binance account, navigate to the Deposit button, and then choose BTC after locating the wallet. Opt for Deposit Crypto when the webpage prompts. Other options that members will see on the site are to buy the token, receive a token, and deposit money from the bank account to Binance.
A list of networks will appear. Choose BTC Lightning and proceed by entering the amount that has to be deposited.
The transfer will be processed after the deposit request has been confirmed. While funds do not take a long time to appear in the wallet or account, one may have to wait for a while, depending on how many requests are being processed by the system. Other platforms – mobile applications – have a similar approach for users who are looking to deposit and withdraw BTC to the Lightning Network.
Leveraging the potential of Lightning Network comes in handy for several reasons.
- Lightning Network alleviates congestion on the actual Bitcoin blockchain. This makes way for a larger number of transactions to be processed by the Network
- Fees are lower on Lightning Network, making smaller transactions viable for all users
- Miners are not required to confirm the transactions. Thereby bringing down the time it takes to complete the transaction
- Bitcoin Lightning Network protects the privacy of an individual by not revealing their details to the other person
The crypto market continues to struggle with volatility; however, BTC can be seen hailing the ship with a $30k+ trading value. Specifically speaking, the digital token is exchanging hands at $30,308.30 at the time of drafting this article. This is an increase of 0.20% in the last 24 hours and 14.34% in the last 30 days.
There are many factors that contribute to the rise and fall of a token’s value, but it can be assumed that getting listed on Lightning Network is one of the factors for the positive fluctuation.
To reiterate, users can deposit and withdraw BTC – Bitcoin – on the Lightning Network effective now. Fees are on the lower side, and transactions are near-instant, with privacy enabled for all.