Lightning Labs is on track in its quest to expand its network to accommodate more exchanges and offer efficient services. Leading crypto platform OKEx has announced its readiness to provide relatively quicker and more affordable BTC payment systems by integrating an upcoming Lightning Network.
Yesterday, a statement released by OKEx stated that the project would be launched before the third quarter of the year, a move that will enable OKEx to participate in the Lightning node. By integrating the systems, the firm’s customers will choose Lightning Network as one of the options to deposit or withdraw Bitcoin when making transactions. This will indeed cut down the cost of transactions for both the company and its users.
Lightning Network to Use Wumbo To Process Large Payments
The Lightning Network is a 2nd-level scalability system and transaction protocol used in the BTC blockchain. Two crypto experts discovered this program in 2015 with the sole aim of solving the scalability issues associated with Bitcoin. A report released by a cryptoanalysis platform stated that, on average, a Bitcoin transaction fee costs $16 this week. Meanwhile, the upcoming program is merely a layer rather than a blockchain.
This system will be used for mini Bitcoin payments. To achieve this aim, the Lightning firm launched a system known as Wumbo Aug. last year to enable nodes to process large payments at cheaper rates. Wumbo, meaning “big,” is used to refer to a TV show. The channel got the name because it is bigger than 0.1678 Bitcoin, an equivalent of $6000.
This is not the first time a crypto platform will integrate its system with Bitcoin Lightning Network. Two years ago, in Europe, Bitstamp launched the same system to upgrade its network capacity. Meanwhile, a report by Billy Bamb in July 2020 revealed how the BTC’s Lightning Network was facing some crucial problems as the digital asset was finding it difficult to outrank its competitors in providing speedy systems of transactions.
How Far Has the Lightning Network Fared?
The BTC network was introduced to accelerate lower-valued Bitcoin blockchains and became more popular, as it increased by over 30% in 2019. However, the lightning network’s growth does not come with its disadvantages, as it is becoming vulnerable to attacks. Meanwhile, experts have alerted Bitcoin that the system is prone to theft and funds might be at risk.
In December last year, Kraken, one of the crypto exchanges, revealed that It would also launch the Lightning Network this year to boost the system’s scalability. The firm had hired experts from different fields to accelerate the goal. The company’s spokesperson stated that their users were looking forward to quick and practical payment solutions to perform effortless transactions at affordable rates.
Billy recently stated that studies revealed that almost $10 million could be stolen by hackers and fraudsters via the lightning network. They added that though the system was vulnerable, it was not could be solved. The researchers explained that payment systems are vulnerable to congestion that could prevent users from withdrawing their money as quickly as possible in times of attack.