Coinbase Moves Closer to Bitcoin Lightning Integration with Lightspark Partnership
Coinbase, a leading cryptocurrency exchange, has taken a significant step towards integrating Bitcoin Lightning on its platform through a new partnership with Lightspark, an enterprise-focused Lightning solution led by former PayPal president David Marcus.
In a recent post on X, Coinbase CEO Brian Armstrong stated that the integration of the Bitcoin layer-2 network will occur “soon.” This integration will enable Coinbase’s vast user base of 108 million individuals to benefit from potentially faster and more cost-effective Bitcoin transactions.
Lightspark, in an April 3 post, explained that “Lighting up all Coinbase touchpoints with Lightning” will offload more transaction activity to Bitcoin’s second layer. This move aims to address the recent increase in fees on Bitcoin’s base layer.
Although Armstrong confirmed Coinbase’s plan to integrate Bitcoin Lightning back in September, specific details about how and when this integration would take place were not provided.
Cointelegraph reached out to Coinbase for further information but did not receive an immediate response.
Established in 2022, Lightspark has primarily focused on simplifying the implementation and management of Lightning nodes for reliable transaction sending and receiving.
The company has also developed Lightspark Predict, an AI-based smart engine designed to optimize liquidity requirements and routing in real time. Its goal is to maximize transaction success rates and finality times.
According to Bitcoin financial services firm River, the success rate of Lightning payments is approximately 99.7%. This figure is based on analysis of 308,000 Lightning transactions requested on its platform in October of last year.
River found that the main reason for payment failure is the inability to find a payment route with sufficient liquidity to facilitate the transfer. However, the firm noted that the average Lightning transaction size was around 44,700 satoshis or $11.84.
River estimated that between 279,000 and 1.1 million Lightning users were active in September.
Coinbase’s main competitor, Binance, integrated Bitcoin Lightning in July of last year.
Lightning has gained popularity as a payment method in various locations, including Lugano, Switzerland; El Zonte in El Salvador, also known as “Bitcoin Beach”; and Utiva in Costa Rica, known as “Bitcoin Jungle.”
However, some industry figures, such as Bitcoin advocate Michael Saylor, believe that Bitcoin is better suited as a store of value technology rather than a medium of exchange.
Key Questions:
– How can Bitcoin payments make a comeback?