Binance will implement Lightning Network to fix this Bitcoin issue
Bitcoin’s value falls as Binance adopts Lightning Network to relieve network congestion. In this context, red flags are being raised amid a downward trend.
Binance has had to temporarily halt Bitcoin [BTC] withdrawals twice in the previous 48 hours owing to network congestion. The exchange enabled the Lightning Network in response to this congestion and withdrawal suspension.
Binance, a leading cryptocurrency exchange, has taken preventative action in the face of excessive network congestion by integrating the Lightning Network, an L2 scaling solution meant to improve Bitcoin transactions.
After a brief withdrawal stoppage on May 7 and 8, which naturally alarmed many Binance customers, the company has made this decision.
Binance, a major participant in the cryptocurrency exchange market, saw an influx of activity lead to a huge number of pending transactions.
Due to the unprecedented volume of traffic, Binance had to temporarily block withdrawals while it worked to resolve the network congestion.
When Binance saw the need for a long-term solution, it acted swiftly to include the Lightning Network. This payment system runs on top of the Bitcoin blockchain and aims to ease congestion by making Bitcoin transactions quicker and cheaper.
Overlaying the Bitcoin blockchain, the Lightning Network is a technology designed to overcome Bitcoin’s fundamental scalability and transaction time constraints.
The fundamental goal of this system is to develop a network of off-chain payment channels, which will allow for faster and cheaper transactions.
Bitcoin network transactions must be recorded on the blockchain, a process that takes considerable time and computing power.
In addition, the blockchain may get congested as more users join the network and the amount of transactions increases, leading to delays and increased costs.
The Lightning Network overcomes this problem by enabling instantaneous cross-blockchain payments. Off-chain transactions, such as those represented by these channels, are not instantly recorded on the Bitcoin blockchain. Instead, members inside a payment channel may interact with one another several times without needing to include the blockchain each time.