OKEx Exchange to Integrate Bitcoin's Lightning Network for Faster, Cheaper Transactions

High on-chain fees and transaction times for bitcoin can be off-putting to users, the exchange said.

Feb 2, 2021 at 3:50 p.m. UTC
Updated Sep 14, 2021 at 11:05 a.m. UTC

Cryptocurrency exchange OKEx says it will integrate the Lightning Network, a layer 2 bitcoin payments technology, in the second quarter of this year.

  • The addition of Lightning would decrease both bitcoin transaction fees and times – in turn improving the exchange user experience, Seychelles-based OKEx said.
  • Exchange users will be able to select Lightning Network as an option when depositing and withdrawing bitcoin, allow them to send and receive crypto in near-real time.
  • Amid high activity in bitcoin's bull market, the average bitcoin on-chain fee is around $15 at press time, while transaction confirmations have recently been ranging from 30 minutes to hours.
  • OKEx said such statistics are discouraging users from interacting with the bitcoin network.
  • The integration means OKEx is able to offer "more competitive products" and, at the same time, "openly demonstrate our support for the bitcoin network by increasing the number of participant nodes in the Lightning Network," said CEO Jay Hao.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.