Coinbase, the renowned cryptocurrency exchange, is actively considering the incorporation of the Lightning Network, a prominent layer-2 scaling solution for Bitcoin. Brian Armstrong, the CEO of Coinbase, made this disclosure in response to Jack Dorsey, the co-founder of Block Inc., a financial services company, who questioned why Coinbase seemed to disregard Bitcoin and the Lightning Network.
Armstrong’s response was candid: “We’re examining the best way to integrate Lightning. It’s a complex endeavor, but I believe it’s worth pursuing. I am fully in favor of facilitating Bitcoin payments.” The Lightning Network was devised to tackle the scalability challenges of the Bitcoin network, allowing users to establish payment channels for conducting off-chain transactions. These off-chain transactions offer swifter and more cost-efficient processing compared to traditional on-chain Bitcoin transactions.
Addressing Dorsey’s assertion that Coinbase was overlooking Bitcoin, Armstrong countered: “I’m not sure why you think we’re neglecting Bitcoin—we’ve introduced more people to Bitcoin than perhaps any other company worldwide. Let’s collaborate on this.” Dorsey, a vocal advocate of Bitcoin, swiftly responded to Armstrong’s call for cooperation, expressing enthusiasm about a potential partnership to enhance focus on Bitcoin and layer 2 technologies.
This isn’t the first time Armstrong has hinted at integrating the Lightning Network in response to critiques of neglecting it. In April, he mentioned, “Lightning is excellent and something we will incorporate.”
If Coinbase chooses to implement support for the Lightning Network, it would join the ranks of leading cryptocurrency trading platforms, such as Bitstamp, Kraken, OKX, Bitfinex, and recently, Binance, which have integrated this solution. Block’s mobile payment service, Cash App, also fully adopted the Lightning Network in October of the previous year.
Coinbase has yet to provide an immediate response to Decrypt’s inquiry for comments.
