The US-based cryptocurrency exchange Kraken is looking to launch Lightning Network on its platform. According to the exchange, the new integration will enhance the user experience by reducing fees and quickly processing crypto transactions.
Pierre Rochard, Bitcoin strategist at Kraken, highlights that Lightning will initially be used for “instant” crypto withdrawals, pushing transaction fees to less than $1 from $10. Although the deposit fee is entirely free on the exchange, the integration will rapidly clear deposits, which means users will not have to wait for 30 minutes.
To execute a Lightning Network on the platform, Kraken will hire a new team. The exchange spokesperson said, “In 2021, we are committed to hiring a team to focus specifically on the Lightning Network, as part of our continuing effort to deliver the best possible experience for traders and investors,” adding, “We expect to allow clients to withdraw and deposit Bitcoin on Lightning in the first half of 2021, which will allow clients to move their Bitcoin instantly and with the lowest fees.”
Total Value Locked in Lightning Network Is Surging
Lightning Network is layer 2 technology for bitcoin that employs small payment channels to enhance the blockchain’s ability to manage direct transactions. LN separates transactions from the main blockchain allowing the platform to achieve its goal to decongest bitcoin and minimize transaction fees. On DeFi Pulse, it is the only DeFi platform built on Bitcoin Blockchain.
As of now, the total value locked in Lightning Network is climbing up to hit new all-time highs of about $21 million, according to data from DeFi Pulse. However, compared to Lightning Network expansion, the Wrapped Bitcoin has grown very quickly as it has more distribution of Bitcoin.