Using the new Lightning Network, users of Kraken exchange can instantaneously send and receive BTC with almost no extra cost. Lightning payments are much quicker and faster compared to the previous structure used by the crypto firm.
Kraken Adopts LND Lightning Network
Kraken, a cryptocurrency firm, has announced that it now uses BTC’s Lightning Network, which will enable low-cost and quick withdrawals and deposits of BTC by users.
“Adoption will come from those who have the paper currency in private bank accounts and are looking to convert it to BTC,” Pierre Rochard, Kraken’s product manager, informed Bitcoin Magazine. “Kraken will provide a suitable platform for customers to do so, after which they may fund their mobile wallet and utilize it as a means of trade. That is unquestionably the next stage in Bitcoin’s growth.”
Kraken became a member of the Lightning System by establishing its personal Lightning node. According to the firm, all of its customers may now utilize the new functionality, which supports withdrawals and deposits of about 0.1 Bitcoin, or ten million satoshis on every transaction.
“Lightning is far more powerful than the previous on-chain BTC while retaining the security of the on-chain BTC. So, it really offers the perfect mix,” Rochard added.
Lightning facilitates low-cost, high-speed BTC transactions by abstracting tiny, frequent transactions out of the basic layer of the Bitcoin network. This concept takes the form of channels of payment, in which customers secure BTC on-chain by generating two-of-two multisig wallet addresses which can subsequently be used to send payments off-chain.
“By using Lightning, users can send an off-chain payment which is significantly more energy saving, not just because no miner fees are added, reducing miners’ electricity consumption, but because the transaction needs to only be stored as well as shared between the two users in that channel,” Rochard explained.
Thus, Lightning extends the BTC blockchain to serve as a new layer and enables effective usage of Bitcoin as a means of exchange. The network will do this by creating an interconnected network of various payment channels that are inextricably linked and capable of processing multiple transactions every second that BTC is routed from sender to the receiver. Kraken used LND (Lightning Lab node implementation) because of the API interfaces and substantial developer information provided by the project.
“The new experience has been great since they have a fully complete API and are among the first Lightning protocol implementations,” Rochard added.
Kraken has the widest customer base who have a good deal of expertise with LND. As a result, it has proved to be both simple to use and quite dependable since users are not entirely new to it.