OKEx, a world-leading crypto currency spot and derivatives exchange, announced that it will integrate the Bitcoin Lightning Network, a second layer scaling solution based on the Bitcoin blockchain, into its platform in the next quarter.
This major improvement aims to improve the user experience on the exchange by significantly reducing transaction fees and times. The Lightning integration also highlights OKEx’s deep commitment to unveiling the most advanced Bitcoin technology and advancing the development of the Bitcoin ecosystem.
Lightning Network, first launched in 2015 as a Layer 2 scaling solution by Joseph Poon and Thaddeus Dryja, is a decentralized network that uses smart contracts in Bitcoin’s blockchain to facilitate instant payments over the network. Lightning Network, an off-chain scalability solution for Bitcoin’s network congestion, acts as a payment protocol on top of the Bitcoin blockchain and routes payments through participating nodes, a peer-to-peer system that drastically reduces transaction fees and times.
As BTC adoption becomes increasingly widespread and more users interact with the Bitcoin blockchain, the cost of transactions increases significantly while transaction speed decreases drastically. Currently, the average BTC on-chain fee is more than $ 10 and takes 10 to 30 minutes to complete, preventing many users from interacting with the network. Integrating Lightning with the OKEx platform will allow users to send and receive BTC in real time at virtually no cost.
As OKEx becomes a participant node on the Lightning Network, users will be able to select the Lightning Network option when depositing and withdrawing BTC.
“OKEx is extremely proud to be one of the first major exchanges to integrate the Lightning Network. We are always looking for new ways to reduce user transaction fees and times. By integrating Layer 2 payment protocols such as the Lightning Network, we can be more competitive.
“Increasing the number of participating nodes in our users as well as the number of participating nodes on the Lightning Network clearly demonstrates our support for the Bitcoin network,” OKEx CEO Jay Hao said.
“OKEx’s Lightning integration marks a huge leap forward for its users and the bitcoin community as a whole, enabling instant, global, low-cost transactions,” said Elizabeth Stark, CEO and co-founder at Lightning Labs. “OKEx’s leadership in adopting Lightning will help bring bitcoin to the next billion people around the world.”