Light Speed: Kraken, Another Giant Exchange Integrates The Lightning Network
02 Avril 2022 - 3:56PM
NEWSBTC
This is huge! Kraken now supports Lightning Network deposits and
withdrawals. The suddenly popular second Layer protocol keeps
growing and gaining importance. “Finally, traders have an instant
and inexpensive way to move bitcoin on and off the platform,”
Kraken said in their official announcement. The Lightning Network
is much more than that, though. What will happen once
Kraken’s extensive clientele tries out Lightning transactions? Will
the phenomenal experience change the way they see bitcoin? The
second layer solution can process millions of transactions per
second and all operations cost pennies and offer final settlement.
There are also privacy gains in using it. The huge innovation,
though, is the cash-like experience. The Kraken integration
comes with a Lightning node of their own. The company used LND by
Lightning Labs to implement the node. The reason is that “they have
the largest user base and we have a lot of people on the network
that have lots of experience with LND. So it has proven to be easy
to use and very reliable as well.” That’s according to Kraken’s
bitcoin product manager, Pierre Rochard, who also said to Bitcoin
Magazine: “Adoption is going to come from people who have
fiat in their bank account, and they need to get it into Bitcoin.
Kraken is providing an excellent venue for them to do that, and
then they can top up their mobile Lightning wallet and use it as a
medium of exchange. That’s clearly the next step in terms of
Bitcoin’s evolution.” Designed with this and the cash-like
experience in mind, Kraken limits deposits and withdrawals to 0.1
BTC. BTC price chart for 04/02/2022 on Binance | Source: BTC/USD on
TradingView.com Kraken Announced Lightning Network Integration In
2020 Even though this looks like it magically happened, the
integration had been in the works for a while. In 2020, Kraken
stated its intentions: “In 2021, we are committed to hiring a team
to focus specifically on the Lightning Network, as part of our
continuing effort to deliver the best possible experience for
traders and investors. We expect to allow clients to withdraw and
deposit Bitcoin on Lightning in the first half of 2021, which will
allow clients to move their Bitcoin instantly and with the lowest
fees.” It took a while, but it’s finally here. Market-wise,
will this move the needle in favor of bitcoin? Will the world even
notice? According to this list, Kraken became the 23rd exchange to
support the Lightning Network. Among the giant ones that are
onboard are Bitfinex, OKEx, OKcoin, BitMex, and Bitstamp. Among the
up-and-coming ones, BullBitcoin, Buda, CoinCorner, Kollider, and
Boltz. This also means, that you're able to instantly move the
lightning payment you received to @krakenfx to exchange it for
fiat, basically reducing the currency exchange risk to zero.This
completely changes the dynamic for fiat brick and mortar
stores.https://t.co/bpNzKC7ZDL — zero fee routing ⚡
(@zerofeerouting) March 31, 2022 And, since we’re on lists, in
their announcement Kraken provided Lightning wallet
recommendations: “For example, BTCPay Server enables
Lightning payments for merchants, greatly improving the bitcoin
checkout flow. For consumers, Breez, Phoenix and Muun bring
Lightning to mobile with a modern user experience.” As to the
importance of the move for markets and business, a pseudonymous
Lightning node operator that goes by “zero fee routing” puts
everything in perspective. “This also means, that you’re able to
instantly move the lightning payment you received to Kraken to
exchange it for fiat, basically reducing the currency exchange risk
to zero. This completely changes the dynamic for fiat brick and
mortar stores.” Attacking The ESG FUD Head On The increase in
Lightning Network adoption also brings a great opportunity with it.
The community could clean up the disgusting ESG-based narrative
enemies of bitcoin have been planting in mainstream media.
Regarding this, in the already quoted interview Kraken’s Pierre
Rochard said: “With Lightning, you can send a payment
off-chain that is much more energy efficient, not only because
you’re not adding the miner fees, and thus the amount of
electricity consumption by miners, but also because that payment
only has to be stored and shared by the two parties in that
channel.” Do Greenpeace and Ripple not know that most bitcoin
transactions are going to be off-chain in a few years? Do they not
know that the Lightning Network alone will take bitcoin out of the
conversation its enemies have been carefully manufacturing? Kraken
certainly knows. And took action. Speaking about Kraken, its
CEO Jess Powell has been present on the news lately. He recommended
buying bitcoin below $40K. During the Canadian crisis, he
recommended bitcoiners to take their funds out of centralized
exchanges. And he refused to voluntarily ban Russian users,
providing a convincing rationale to justify Kraken’s actions.
Featured Image by Ferhat Deniz Fors on Unsplash | Charts by
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