Kraken will join Bitcoin’s Lightning Network (BTC) in 2021
During the first half of 2021, the Kraken exchange plans to integrate Bitcoin’s Lightning Network (BTC) into its ecosystem. Users will be able to carry out transactions more quickly and at lower cost.
In a press release published on 16 December, the Kraken exchange confirmed its intention to join the Lightning Network, the famous Bitcoin overlay (BTC). Kraken is by Bitcoin Compass therefore starting to recruit a team of developers who will be specifically dedicated to the Lightning Network.
Kraken plans to join the Lightning Network at the beginning of 2021, accompanied by all the benefits it brings to Bitcoin users. With Lightning Network, Kraken users will be able to move their Bitcoins almost instantly and above all with extremely low costs.
Currently, 3 confirmations on the blockchain are required to deposit BTC on Kraken, a wait of almost 30 minutes. The integration of the Lightning Network will bypass this security and allow anyone to deposit BTC on the platform instantaneously.
Kraken will go much further in its initiative and even aims to shape the future of programmable payments. Because the Lightning Network is very inexpensive, it lends itself rather well to payment applications, much more so than Bitcoin.
„We are constantly investing in improving the technology, both internally and in the wider ecosystem. Ultimately, it is Kraken’s mission to accelerate the adoption of Bitcoin. We want to work with other exchanges to advance this technology and develop this network,“ said Pierre Rochard, Strategist at Kraken.
Kraken’s mission is therefore clear, to accelerate the adoption of Bitcoin. As soon as the integration of the Lightning Network has been a success, Kraken will seek to work with other platforms to address the issue as well.
2021, the year of the Lightning Network?
Presented for the first time in 2015, the Lightning Network went into operation in March 2018. Since then, it has been under-utilised, despite its technical capabilities far superior to Bitcoin as we know it. Its deployment on a platform as important as Kraken will give it a significant boost.
If other major platforms such as Coinbase, Binance or Huobi also plan to integrate the Lightning Network into their ecosystem, we can expect a very rapid development of applications based on the overlay.
In addition to speeding up transactions and reducing their costs, the Lightning Network has recently developed Lightning Finance, or LiFi, a means for Bitcoin enthusiasts to generate passive income with their funds, all in a non-custodial manner. In the wake of decentralised finance (DeFi), the Lightning Network has recently developed a liquidity market for node operators.