Binance is integrating the Bitcoin Lightning Network to its Platform

The cryptocurrency exchange is running Lightning nodes ahead of fully integrating Bitcoin Lightning Network payments.

Binance on Bitcoin Lightning Network

#Binance has started running Lightning nodes before supporting the #bitcoin Lightning Network for deposits and withdrawals.

Binance's official Twitter account confirmed this past Tuesday morning saying, "Yeah, that's us!" after some "eagle-eyed users" spotted the exchange's Lightning network nodes. Binance had first announced the addition of Lightning Network support on May 8.

Binance: "Yes, that's us!"

However, Binance noted that “more technical work still needs to be done” before supporting payments on the Lightning network.

Binance is working to integrate the Bitcoin Lightning Network for deposits and withdrawals. Some eagle-eyed users spotted our new lightning nodes recently. Yes - that's us! However, there's still more tech work to be done. We'll update once Lightning is fully integrated.

On the other hand, Bitcoin developer Udi Wertheimer reported finding "Binance" nodes on Lightning last week. A Lightning node enables routing and processing of Lightning network transactions.

What is the Bitcoin Lightning Network?

Bitcoin Lightning Network

The Bitcoin #LightningNetwork is a second layer solution developed for the Bitcoin blockchain to facilitate faster and cheaper transactions than the main Bitcoin network.

The median fee for transactions on the Lightning network is $0.00013, according to data from Glassnode.

So far, several cryptocurrency exchanges, including Kraken, OKX, and Bitfinex, and the mobile payment platform, Cash App, have integrated support for the Lightning Network.

Glassnode data shows that total Bitcoin connected to the Lightning Network is up 65% since the start of the year; Bitcoin's Layer 2 network currently has a capacity of 5,424 BTC, worth $146.4 million.

#BTC #crypto2023

$BTC $BNB

Cryptocurrency was a rapidly evolving field. Here are some potential future trends that were discussed at the time. Keep in mind that the future can be unpredictable, especially in a rapidly changing field like cryptocurrency:

Increased Adoption and Acceptance: More businesses and consumers may start accepting cryptocurrencies as a valid form of payment. Companies like Tesla and Square have already started accepting Bitcoin, and this trend could continue.

Regulation and Legal Frameworks: As cryptocurrencies become more popular, governments around the world will likely develop more comprehensive regulatory frameworks. This could add legitimacy to cryptocurrencies and protect consumers, but it could also limit their growth and potential.

Decentralized Finance (DeFi): #DeFi uses blockchain technology to remove intermediaries like banks from financial transactions. This could make financial services more accessible to people around the world.

Layer 2 solutions and scaling: As the user base of major cryptocurrencies like Bitcoin and Ethereum grows, so too does the need for scalability. Layer 2 solutions like Ethereum's Optimism or Bitcoin's #LightningNetwork could become more widespread, making transactions quicker and more affordable.

Advancements in Blockchain Technology: We could see new #blockchain technologies that address some of the current issues with cryptocurrencies, such as energy consumption and transaction speeds.

Integration with AI and IoT: There could be more integration between blockchain (the technology underpinning cryptocurrencies), artificial intelligence, and the Internet of Things. This could lead to new applications and use cases for cryptocurrencies.

Privacy coins: There may be more demand for cryptocurrencies that offer enhanced privacy features, such as Monero and ZCash.

Central Bank Digital Currencies (CBDCs): Many central banks, like the People's Bank of China and the European Central Bank, are exploring the possibility of issuing their own digital currencies. This could dramatically change the cryptocurrency landscape.

Remember, the future of cryptocurrency is very much in flux, and many of these predictions could change based on technological advancements, regulatory decisions, and shifts in market demand.

Binance CEO has indicated plans for the exchange to integrate the Lightning Network for saved costs and faster transactions.

The feature will be supported for small amounts at first, with various solutions already in the works.

CZ also advertised the exchange’s mining pool, saying Binance aims for a model that prioritizes low fees.

Binance does not intend to get involved in the hardware of Bitcoin mining.

Binance CEO Changpeng Zhao, alias CZ, has revealed plans for the exchange to integrate the Lightning Network, a Layer-2 (L2) payment protocol layered on top of Bitcoin and other cryptocurrencies and blockchains.

#Binance exchange leverages Dubai’s crypto-friendliness for industry growth

Binance CEO Changpeng Zhao spoke during an AMA (Ask Me Anything) session on Twitter Spaces, answering questions from the audience. Among the key highlights of the one-hour long question and answer engagement was CZ’s daily routine, the exchange’s presence in Dubai, investment advice on social media, mining and the Lightning Network.

CZ, who advised against blindly following investment advice from social media advisers, said that Dubai was already an important crypto innovation hub with multiple industry-related events taking place almost every evening. The Binance executive attributes this to the international presence of the country and its business-friendly practices that has led to a booming local economy. With over 700 employees in Dubai within a span of a little under two years, Binance is growing at a rapid pace.

On the question of mining, #CZ articulated that while Binance does not run a mining farm, neither does it plan to, alluding that the company is more focused on software than hardware.  Nevertheless, the exchange runs one of the biggest mining pools with special interest in models that prioritize low fees. Miners use the Binance’s pool, tapping from the exchange’s liquidity to cover their operational costs.

Binance to support Lightning Network

With traders and investors opting for cheaper and faster transactions, the largest exchange by trading volume is looking to integrate the Lightning Network for its Binance Pay and related wallet services. According to CZ, every exchange should adopt the L2 payment protocol as a helpful innovation for the future.

According to Changpeng Zhao, the principle limitation of the lightning network is the inability to pre-generate addresses, which is why the Binance team is working on a way around this challenge. The protocol will however be enabled for small transactions at first and while CZ did not provide a specific date for the roll out, he said efforts were already underway as part of the platform’s commitment deliver benefits like saved costs with faster transactions to users. 

In the meantime, Binance “uses a secure wallet infrastructure where addresses are pre-generated in a separate protected environment, and public keys are then exported to the production environment, which is different from the wallet environment.”

Notably, the Lightning Network theme took center stage around May 7 when Binance exchange temporarily closed Bitcoin withdrawals, citing Bitcoin (BTC) network congestion.

The exchange had suffered a similar issue in June 2022 when stuck transactions caused backlogs. As reported, the downtime played to OKX exchange’s favor, calling users’ attention to the Lightning Network for more affordable rates. The likes of Alex Thorne, the head of Firmwide Research at Galaxy Digital New York advocated for more engineering to bypass expensive blockspace amid a high-fee environment, hence the #LightningNetwork .

ChatGPT Launches Bitcoin Plug-in for Empowering Bitcoin Programming 

#OpenAI's #ChatGPT now comes with a special feature called the Bitcoin plug-in. It's designed to help people who want to write code for Bitcoin and the Lightning Network, which are important parts of the cryptocurrency world.

As cryptocurrencies like Bitcoin become more popular, there's a growing need for tools that make it easier to create programs for them. That's where the ChatGPT Bitcoin plug-in comes in. It's like a special tool that helps programmers write, test, and improve their Bitcoin-related code.

The plug-in works well with other programming languages and tools that developers already use. It has lots of useful features and tools that make it easier to work with Bitcoin. For example, it includes pre-made pieces of code, libraries, and ways to connect with other programs. This helps programmers handle Bitcoin transactions, build special types of wallets, and work with the Lightning Network.

The ChatGPT #bitcoin  plug-in also offers helpful suggestions while programmers are working, highlights mistakes in the code, and provides guidance on how to fix them. It even keeps programmers updated with the latest information and instructions related to Bitcoin and the Lightning Network.

As more and more people start using Bitcoin and the Lightning Network, there is a greater need for skilled programmers in this area. The ChatGPT Bitcoin plug-in not only helps experienced programmers but also serves as a learning tool for those who are new to Bitcoin programming.

The ChatGPT Bitcoin plug-in is easy to use and has many powerful features. It aims to make programming for Bitcoin and the #LightningNetwork  simpler and more accessible to everyone. OpenAI wants to encourage innovation and help the cryptocurrency industry grow by providing people with the tools they need.

In summary, the ChatGPT Bitcoin plug-in is a big step forward for Bitcoin and Lightning Network programming. It makes it easier for programmers to work with Bitcoin and gives them the resources they need to be successful. By doing this, OpenAI hopes to contribute to the growth and development of the cryptocurrency world. 

#LightningNetwork is very useful to users of crypto exchanges for two reasons. 

The first is that it greatly reduces the cost of #Bitcoin  transactions. Those who move large amounts of money to and from exchanges have no problem paying even $30 fees on individual deposits or withdrawals, but for everyone else even the current $2 can be a deterrent. 

LN reduces these castes to an infinitesimal, and therefore irrelevant, fraction, breaking down all possible barriers due to the high cost of Bitcoin transactions. 

The second and perhaps even more important reason is that it makes transactions in BTC almost instantaneous. 

Currently Bitcoin withdrawals and deposits to and from Binance can take up to hours before they are completed. 

In contrast, with LN they could be executed almost immediately. 

All of this makes holding Bitcoin on non-custodial wallets much cheaper and more efficient because it allows them to be moved quickly and cheaply to the exchange at any time. 

The slowness of Binance

#Binance is usually very quick to implement innovations. However, this time, as CEO #ChangpengZhao himself admitted, they have been particularly slow. 

It is better if the exchange takes its time to do things right. 

Also perhaps until now there was not a great demand from users to be able to use LN. 

Not least because to be able to use LN on Binance it is necessary to have a wallet that supports LN, and not everyone has that yet. 

However, lately there have been a lot of requests to be able to withdraw one’s funds from centralized exchanges in order to store them on non-custodial wallets, but in order to be able to do this smoothly, fast and cheap transactions are required. 

Thus this need also brings with it an implicit demand to be able to use Lightning Network to deposit or withdraw BTC on exchanges. 

The Lightning Network

Truth be told, the highest peak of existing LN channels was in February last year, when there were more than 87,000. Now they are down to 75,000, and they have been dropping since January. 

Instead, nodes are increasing slightly, even though the peak was still in January 2022. 

Instead, what is steadily increasing is the capacity of the LN network, which has risen above 5,400 BTC and close to all-time highs. 

The primary #Bitcoin blockchain (also known as “layer 1”) can move more quickly by shifting some transaction “traffic” to the Lightning Network’s “layer 2” blockchain.

In part, the Lightning Network was created to make Bitcoin operate more like digital money. Transactions are processed “off-chain” and far more rapidly and cheaply than on the main Bitcoin blockchain, with fees that are often fractions of a cent or less. Additionally, lightning transactions use less energy than those on the main network.

The Lightning Network (layer 2) has a theoretical capacity of millions of transactions per second, but the main Bitcoin network (layer 1) routinely handles less than ten transactions per second.

How does the lightning network work?

To create off-blockchain payment channels between pairs of users, the Lightning Network uses smart contracts. Funds can be exchanged between them almost immediately after these payment channels have been set up.

It’s clever that the network doesn’t have to couple up every user. Funds can still be easily moved between all parties in a network; for example, if User A and User B have a channel together, and User C has a channel with User B but not User A, the payment method for users is pretty similar. Funds can still be freely transferred between all networked parties.

Users can terminate their payment channels and settle their outstanding balances on the main blockchain at any moment.

Users can terminate their payment channels and settle their outstanding balances on the main blockchain at any moment. The entire Bitcoin network may move more quickly since the opening and closing of payment channels are recorded on the core blockchain. Furthermore, compared to transactions done on the main blockchain, #LightningNetwork transactions may be more private (because layer one transactions all appear on a public and transparent ledger).

As the 2024 presidential election looms on the horizon, the landscape of American politics is witnessing an interesting convergence with the world of cryptocurrencies.

Two prominent candidates, Robert F. Kennedy Jr. from the Democratic Party and Ron DeSantis, the Republican Governor of Florida, have emerged as supporters of crytpo and #bitcoin .

Their positions on these digital assets, along with Kennedy's intriguing connection to the Nostr platform, raise questions about the potential impact on the crypto industry during the election year.

This feature article delves into the significance of their stances and explores the implications for Bitcoin and the wider crypto ecosystem.

Robert F. Kennedy Jr. and His #Nostr / #jackdorsey connection:

Robert F. Kennedy Jr., a notable figure in American politics, has thrown his hat into the ring as a Democratic presidential candidate for 2024. What makes his candidacy particularly intriguing for crypto enthusiasts is his connection to Nostr, a platform that leverages blockchain protocol and #LightningNetwork to create a truly web3 social media. Notably NOSTR protocol is backed by Jack Dorsey - Twitter founder, known supporter of RFK Jr. and also head of Block Inc.. The Nostr account attributed to Kennedy adds an element of novelty to his campaign, as it showcases his interest in decentralized technologies and certain level of knowledge.

Kennedy's Stance on Crypto and Bitcoin: Kennedy's association with the Nostr platform indicates a certain level of understanding and interest in the crypto space. While he has yet to release a detailed policy framework specifically addressing cryptocurrencies, his openness to participating in blockchain-based prediction markets suggests a broader appreciation for the potential benefits of decentralized technologies. As the 2024 campaign unfolds, it will be interesting to see how Kennedy's position on crypto and Bitcoin develops and whether he articulates a more comprehensive plan for the industry's growth and regulation. He displayed often libertarian views so I guess that is good news for #Defi and $BTC

#RonDeSantis Bitcoin and Elon MUsck

The Republican Advocate for Crypto: On the Republican side, Ron DeSantis, the Governor of Florida, has emerged as a vocal supporter of cryptocurrencies and Bitcoin. Known for his pro-business stance, DeSantis has actively sought to position Florida as a crypto-friendly state. Under his leadership, Florida has taken steps to embrace digital currencies, including exploring the use of blockchain technology in various sectors and creating a favorable regulatory environment for crypto businesses. DeSantis' commitment to fostering innovation and economic growth through crypto-friendly policies sets the stage for a potentially transformative impact on the industry if he were to secure the Republican nomination and eventually become president. His presidential bid is set to start on Twitter with direct engagement from Elon Musck.

Implications for the Crypto Industry in the 2024 Election Year

The growing support for cryptocurrencies from both Democratic and Republican candidates carries significant implications for the crypto industry as a whole. The increased visibility and acceptance of digital assets at the highest levels of American politics could lead to greater regulatory clarity, favorable legislation, and enhanced adoption.

A pro-crypto president, regardless of party affiliation, could create an environment conducive to innovation, investment, and technological advancements within the industry.

Potential Challenges and Obstacles for crypto in 2024

While the support for crypto from political candidates is promising, challenges and obstacles remain on the path to mainstream acceptance. Regulatory concerns, including issues related to investor protection, money laundering, and financial stability, will continue to be hot-button topics.

Striking the right balance between promoting innovation and safeguarding the interests of consumers and the financial system will be crucial for any candidate aiming to navigate the complex landscape of crypto regulations effectively.

Conclusion

The 2024 presidential election presents a unique opportunity for the crypto industry to secure a prominent position on the political agenda. With candidates such as Robert F. Kennedy Jr. and Ron DeSantis voicing support for cryptocurrencies and Bitcoin, the industry's potential impact on the economy, technological innovation, and financial systems is coming to the forefront of the national conversation. As the campaign unfolds, it remains to be seen how these candidates refine their positions, propose policies, and rally support from voters