OKCoin Exchange Opens Lightning Network BTC Deposits and Withdrawals
- Lightning Network deposits and withdrawals are now live on the OKCoin exchange.
First announced in January, OKCoin has completed the integration of Bitcoin’s layer 2 scaling solution, Lightning Network (LN), allowing deposits and withdrawals through the channel. The exchange granted the OKCoin Bitcoin Developer Grant to leading Bitcoin developer Antoine Riard, who is actively developing security solutions for the LN channels.
According to a post from OKCoin, users can now deposit and withdraw small amounts of Bitcoin with up to “99% reduced transaction fees”.
Over the past few years, a small amount of BTC transactions have been a challenge to complete as scalability issues spiked fees upwards of $14 as of the end of February. Moreover, average transaction times of 10 minutes per block could see a transaction take up to an hour awaiting multiple block confirmations.
Bitcoin transactions on LN, however, take a few seconds to be confirmed while fees are minimized – averaging $0.01 per transaction. Following the integration, OKCoin revised its minimum deposit and withdrawal limits from 0.001 BTC (~$49) to 0.000001 BTC (~$0.05). This will allow small-time traders to easily and conveniently complete transactions on the exchange.
Lightning Network is designed for small transactions – with security being a key reason for this. OKCoin has set a maximum transaction limit of 0.05 BTC (~$2,450).
Hong Fang, CEO of OKCoin, stated the exchange is working with other Lightning network developers to increase liquidity on its LN transaction basket.
OKCoin grants development funds to Lightning Network developer
To christen the launch of LN deposits and withdrawals, OKCoin extended their Bitcoin Development Grant to Antoine Riard, an LN-focused developer who is currently working on Layer 2’s security protocols and developer tools.
The exchange chose Riard for his efforts in developing the Lightning network over the years. Lightning Networks still face some security vulnerabilities that affect the channel's transactions – something that Riard is working on fixing. He is also researching Lightning Network fault tolerance and building a Lightning Network development kit. Fang said on the grants offered to Riard,
“We wanted to sponsor a lightning network, on the one hand, because we are supporting the network, but on the other, because Lightning is advanced, but it still needs a lot of development.”
“Security questions have been raised, and Antoine is one of the developers who is working on this full time.”
The total amount granted to Riard remains undisclosed but is said to help him conduct his research and development for a year.
The launch of the Wumbo protocol on LN, which increased the amount of Bitcoin to be sent through Lightning channels, increased the demand for the L2 solution across exchanges. In September 2020, Bitfinex launched LN channels on its platform, allowing users to deposit or withdraw from the exchange instantly. Kraken and Decred blockchain are the latest projects to add Lightning network support.