Kraken, the most important cryptocurrency exchange in the US, announced Wednesday that it will integrate the Lightning network into Bitcoin (BTC) in 2021. Kraken has pledged that the integration will result in significant increases in speed and fees, and claims Lightning allows Bitcoin “to handle millions of transactions.” Per second. ”
Speaking to Cointelegraph, Pierre Rochhard, chief strategist at Kraken, revealed that Lightning will only be used for withdrawals in the first half of 2021, reducing transfer fees from about $ 10 per transaction to about a penny – enough for unwanted transactions – and to allow “Immediate withdrawal”.
Rochard indicated that the deposit function should follow suit. While deposits on Kraken are already free, the integration will also allow deposits to be removed immediately – meaning that traders won’t have to wait the roughly 30 minutes it currently takes for three Bitcoin blockchain confirmations. He said:
“We really believe this will benefit traders who value speed in many of the strategies they use.”
To facilitate integration, Rochard stressed that Kraken intends to hire a new team with a special focus on the Lightning Network and invite interested parties to apply for jobs.
The Lightning Network is a Bitcoins Layer 2 protocol released in March 2018 after the network activated Segregated Witness a year earlier.
The protocol aims to reduce the number of transactions stored on the blockchain through the use of “payment channels” of smart contracts to facilitate transactions between individual users. The final balance can be sent to the Bitcoin blockchain for settlement.
According to DeFi Pulse, the total cost of the Lightning network is currently around $ 21 million for a full-time job.