Coinbase now supports #LightningNetwork

[snowpega]

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Dear, i have a question, as LightningNetwork is the Bitcoin network, right? So Op has made the thread Coinbase now supports this network so my question here is that is there any impact on the transaction fee or there will be no impact on the transaction fee? As because to this, LightningNetwork may get more usage by the users so this network may get more and more usage after some time. Is there will be any impact on transaction fee or it will remain as it is going on? is that so it is very great implementation, and this news is really great.

I know dear, it is kind of a noob question i am asking here, but i believe that every person is always on the learning stage, even though  he may already have a lot of knowledge. I hope that you won't mind my question! haha. Many Thanks!

[ZAINmalik75]

That's good news, although a lot of centralized exchanges has integrated the LN for BTC a long time ago, you guys can check the list of the centralized exchanges that allowed the LN network and the proofs with dates as well https://github.com/theDavidCoen/LightningExchanges?tab=readme-ov-file This sites comprised of it all data. As we can see Binance also has the LN option.

Many states also show that coinbase is losing its amount of BTC because a lot of people are withdrawing their BTC from the exchange, which means the outflow is too high for the exchange may be to control the outflow and help people to deposit and withdraw funds from the exchange more easily they are preferring this option now. But they are very late.

[bitmover]

<snip>

Dear, i have a question, as LightningNetwork is the Bitcoin network, right? So Op has made the thread Coinbase now supports this network so my question here is that is there any impact on the transaction fee or there will be no impact on the transaction fee? As because to this, LightningNetwork may get more usage by the users so this network may get more and more usage after some time. Is there will be any impact on transaction fee or it will remain as it is going on? is that so it is very great implementation, and this news is really great.

Lightning  network is another network.  Transactions are made offchain, basically for free.

You just make an on chain Transaction when you close the channel, if you wish, after making a lot of transactions.

In practice, you can just transfer for free between coinbase and binance or other exchange that supports LN.

[Wiwo]

If they had integrated it already, a lot of adoption we would have seen in this era. Especially in the field of LN. Although its already advanced but still we would be seeing more innovations. LN on exchanges will make our lives more easier, although we do have to pay the fee for the first time but after that we don't have. I think its not a big deal when we are on exchanges like we can use another coin to minimize the fee or another chain.

It's a bit of a poisoned chalice.

Because you see, a few months ago, they stopped Bitcoin payment support on their Coinbase Commerce payment gateway service (why they would do that still baffles me). But now they are supporting Lightning Network for their customers, so that means they would hopefully have to add back Bitcoin payments but for LN, because othewise it makes no sense to have a payment processor whose options for payment settlement are Ethereum and a bunch of shitcoins.

Just my assumption on the reason why bitcoin was removed from coinbase payment gateway,  may be they want to add the bitcoin lightening network into their payment gateway which will be a much more better option for customers using bitcoin for payment onnthe e commerce sites.

This is a big win for lightening network soon other exchange will follow up on adoption of lightening network to solve the issues of high fees.

[Charles-Tim]

Dear, i have a question, as LightningNetwork is the Bitcoin network, right? So Op has made the thread Coinbase now supports this network so my question here is that is there any impact on the transaction fee or there will be no impact on the transaction fee? As because to this, LightningNetwork may get more usage by the users so this network may get more and more usage after some time. Is there will be any impact on transaction fee or it will remain as it is going on? is that so it is very great implementation, and this news is really great.

Lightning network was created so that more bitcoin users that wants to transact low amount of coins can use it which is fast and can be of no fee or very low amount in fee. But this has not be very effective to reduce the mempool congestion. Also that bitcoin users still prefer the onchain transaction. Also that there have been development that are resulting to congestion. Like the Ordinals and BRC20 tokens.

Lightning  network is another network.  Transactions are made offchain, basically for free.

You just make an on chain Transaction when you close the channel, if you wish, after making a lot of transactions.

In practice, you can just transfer for free between coinbase and binance or other exchange that supports LN.

Lightning network transaction fee can be free, especially if you open a channel directly with someone and you are sending coins to the person or the person is sending coins to you directly. But if you will make use of other channels, the lightning node runner may charge little amount of fee. The amount are always very low. If sending from an exchange to an exchange, fee is charged. The lightning node runners charge fee.

[philipma1957]

Coinbase has finally launched their custodial Lightning Network wallet for its customers, allowing them to send and receive sats using Lightning and evading large transaction fees on layer one.

The Lightning Network infrastructure is powered by Lightspark.

Big win for LIghtning Network today!

Source: https://x.com/lightspark/status/1793760800311771494

It's about time. I use Kraken and nicehash. I will check out coinbase and how they work.

[KingsDen]

Innovation like this is really important and I hope other exchanges will follow suit too. I'm not sure how it would be able to try this out. Like, use my Coinbase to transfer to a merchant that accepts LN transactions? Would that be the ideal scenario for something like this to be tried out?

One of the reasons LN hadn't hit a mainstream adoption is because exchanges have never weighed into the LN transaction. LN is considered technical and sometimes more technical than the bitcoin transaction itself. Exchanges are known for being user friendly even if they are going to sacrifice privacy for that. If coinbase has integrated LN, it's nice. Other exchanges will follow and seems there'll be solutions for future mempool congestion.

[Charles-Tim]

One of the reasons LN hadn't hit a mainstream adoption is because exchanges have never weighed into the LN transaction.

I do not understand what you meant as 'exchanges have never weighed into the LN transaction'. If you mean exchanges are not yet supporting lightning network yet, that is not true. There are many exchanges that are now supporting lightning network.

LN is considered technical and sometimes more technical than the bitcoin transaction itself.

There are some lightning noncustodial wallets that are newbie friendly now but little amount of money should be used for it. You can try Phoenix or Muun wallet. Another one is Aqua which also has L-BTC which liquid

Exchanges are known for being user friendly even if they are going to sacrifice privacy for that. If coinbase has integrated LN, it's nice. Other exchanges will follow and seems there'll be solutions for future mempool congestion.

I will not say that other exchanges will follow because Coinbase already saw that many exchanges are now supporting lightning network and they think they should also support it.

[KingsDen]

One of the reasons LN hadn't hit a mainstream adoption is because exchanges have never weighed into the LN transaction.

I do not understand what you meant as 'exchanges have never weighed into the LN transaction'. If you mean exchanges are not yet supporting lightning network yet, that is not true. There are many exchanges that are now supporting lightning network.

Let's say there are 100 centralized exchanges in existence, how many do you think supports LN?

[bitmover]

One of the reasons LN hadn't hit a mainstream adoption is because exchanges have never weighed into the LN transaction.

I do not understand what you meant as 'exchanges have never weighed into the LN transaction'. If you mean exchanges are not yet supporting lightning network yet, that is not true. There are many exchanges that are now supporting lightning network.

Let's say there are 100 centralized exchanges in existence, how many do you think supports LN?

In my experience, most of the ones I use do support.

Binance, kraken, bitstamp.. now coinbase.

I believe local small exchanges do not accept,  in general. However, considering the trading volume, most of the biggest exchanges accept .

[Charles-Tim]

Let's say there are 100 centralized exchanges in existence, how many do you think supports LN?

In addition to bitmover's post, this are some other lists https://github.com/theDavidCoen/LightningExchanges. ⚡ indicates the exchanges that are supporting it. The list is not updated.

Kucoin and Bitmart are supporting it. NoOnes is supporting. Bisq, Robosats and exch are supporting it.