US-based cryptocurrency exchange Coinbase is finally implementing the Bitcoin Lightning Network following multiple commitments by the exchange's CEO, Brian Armstrong.

In an announcement on April 3, Lightspark, a payment infrastructure provider based on the Lightning Network, disclosed that it had been chosen by Coinbase to assist with the integration of the Bitcoin Lightning Network.

Through this partnership, Coinbase will utilize Lightspark's remote-key signing implementation. This arrangement allows Coinbase to maintain control over the Lightning signing keys, while Lightspark will handle the Lightning node infrastructure. This shared responsibility model ensures smooth operations without imposing a significant management burden on Coinbase's team.

Lightspark has demonstrated considerable success in simplifying Lightning node management. Its suite of products, which includes SDKs, APIs, and developer tools, seamlessly integrates with the Lightning Network. Additionally, its AI-powered smart engine, Lightspark Predict, dynamically optimizes liquidity requirements to maximize transaction success rates in real-time.

The integration offers several benefits to Coinbase, including leveraging Lightspark's node infrastructure while enabling Coinbase's team to focus on customer-centric initiatives. Furthermore, the collaboration will have a positive impact on the Bitcoin network, particularly during periods of high transaction fees, by enhancing scalability and transaction efficiency. It also establishes a foundation for future use cases by providing liquidity to the Bitcoin network.

Shan Aggarwal, Coinbase's VP of Corporate & Business Development, expressed excitement about the partnership, stating, "We're thrilled to collaborate with Lightspark to remove payment barriers and enable faster and more cost-effective Bitcoin transactions through support for the Bitcoin Lightning Network."

Over the past year, Coinbase has faced mounting inquiries from various members of the cryptocurrency community regarding its failure to adopt the scaling solution, particularly after major competitors like Binance integrated the technology.

In response, Armstrong pledged that Coinbase would also incorporate the Lightning Network while outlining the company's efforts.

This integration is significant for Bitcoin, considering the growing demand for streamlined Bitcoin transactions amid rising prices.