OKEx has announced that it will integrate with the Lightning Network (LN). The goal, according to the exchange, is to provide faster and cheaper transactions for its customers.
The announcement occurred last week, but the integration started to take effect as of this Monday (19th). Confirmation came through the exchange website of a statement shared with CriptoFácil.
“OKEx is extremely proud to be one of the first major exchanges to join the Lightning Network,” commented OKEx CEO Jay Hao.
Reduction in transaction fees
Proposed in 2015, LN is a second tier network for Bitcoin. In addition to allowing quick and cheap transactions, it brings a number of innovations in the use of blockchain.
However, the most immediate impact is actually on the cost. With increasing price increases, LN has a huge avenue of growth in front of it.
“We are always looking for new ways to decrease user fees and transaction times. By integrating Layer 2 payment protocols, such as the Lightning Network, we can offer more competitive offers to our users and, at the same time, openly demonstrate our support for the Bitcoin network, increasing the number of nodes participating in the Lightning Network, ”said Hao .
Rates reach highest level since 2017
The sharp drop in the price of Bitcoin over the weekend has brought back the high costs. One of the reasons would have been the explosion of a plant in China, one of the main responsible for mining.
Consequently, the price of Bitcoin has dropped. Conversely, rates skyrocketed, reaching an average of more than $ 50. It was the highest average value since the historic high in December 2017.
As a comparison, this means that the average amount to send a transaction came close to R $ 300. As a result, the use of the network was not viable, with thousands of transactions waiting in line.
As of Monday morning (19), the chain already had more than 185 thousand standby transactions. This congestion is the biggest recorded since February 23, when the queue reached 169 thousand transactions.
As a result, solutions that reduce fees are always welcome. And its adoption by the exchanges is fundamental for this to reach the market as a whole.
“Lightning’s integration with OKEx marks a big step for its users and the Bitcoin community as a whole, allowing for instant, global and low-cost transactions. OKEx’s leadership in adopting Lightning will help bring Bitcoin to the next billion people around the world, ”said Elizabeth Stark, cofounder and CEO of Lightning Labs.
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