The US-based cryptocurrency exchange Coinbase has finally started integrating the Bitcoin Lightning network, fulfilling promises made by CEO Brian Armstrong.

In a statement on April 3, Lightspark, a payment infrastructure provider based on the Lightning network, announced that it had been chosen by Coinbase to assist in implementing the Bitcoin Lightning Network.

Through this collaboration, Coinbase will utilize Lightspark’s remote-key signing feature. This setup allows Coinbase to control the Lightning signing keys while Lightspark manages the operational aspects of the Lightning node infrastructure. This shared responsibility approach ensures effective operations without overburdening Coinbase's team with managing a large-scale implementation

Lightspark has a track record of streamlining Lightning node management. Their products, such as SDKs, APIs, and developer tools, seamlessly integrate with the Lightning Network. Additionally, their AI-powered smart engine, Lightspark Predict, optimizes liquidity needs in real-time to enhance transaction success rates.

Benefits of Lightning Integration

The integration presents several benefits to Coinbase, enabling the exchange to utilize Lightspark’s node infrastructure while empowering their team to focus on customer-centric initiatives.

Furthermore, the collaboration will have a positive effect on the Bitcoin network, especially during times of high transaction fees, by improving scalability and transaction efficiency. It also sets the foundation for future applications by providing liquidity to the Bitcoin network.

Coinbase's VP of Corporate & Business Development, Shan Aggarwal, expressed enthusiasm about the partnership with Lightspark, aiming to eliminate transaction obstacles and facilitate faster and cost-effective Bitcoin transactions through support for the Bitcoin Lightning Network.

Over the past year, Coinbase has faced mounting inquiries from crypto community members regarding the absence of the scaling solution in their operations, particularly following its adoption by major competitors like Binance. In response, Armstrong assured that Coinbase would integrate the Lightning Network and disclosed the firm's progress in this regard.

The initiation of this integration is significant for Bitcoin, especially as there is a growing need for smoother Bitcoin transactions with the surge in prices.