This is huge! Kraken now supports Lightning Network deposits and withdrawals. The suddenly popular second layer protocol continues to grow and gain importance. “Finally, traders have an instant and inexpensive way to move bitcoin on and off the platform,” Kraken said in a statement. your official announcement. However, the Lightning Network is much more than that.

What will happen once Lightning transactions are tested by Kraken’s extensive clientele? Will the phenomenal experience change the way they view Bitcoin? The second layer solution can perform millions of trades per second and all trades cost pennies and offer final settlement. By using it, there are also privacy gains. However, the big innovation is the cash-like experience.

The Kraken integration comes with a own lightning node. To implement it, the company used LND from Lightning Labs. The reason is that “they have the largest user base and we have a lot of people in the network who have a lot of experience with LND. Therefore, it has proven to be easy to use and also very reliable.” That’s according to Kraken’s bitcoin product manager Pierre Rochard, who also told Bitcoin magazine:

“Adoption will come from people who have fiat money in their bank account and need to convert it to Bitcoin. Kraken provides them with a great place to do this, and then they can top up their Lightning mobile wallet and use it as a means of exchange. That is clearly the next step in terms of the evolution of Bitcoin.”

Designed with this and the cash-like experience in mind, Kraken limits Lightning deposits and withdrawals to 0.1 BTC.

BTC price chart for 04/02/2022 on Binance | Source: BTC/USD on TradingView.com

Kraken announced Lightning Network integration in 2020

Although it seems like it happened by magic, the integration had been in the works for a while. In 2020, Kraken stated his intentions:

“In 2021, we are committed to hiring a team that focuses specifically on the Lightning Network, as part of our ongoing effort to provide the best possible experience for traders and investors.

We look forward to enabling customers to withdraw and deposit Bitcoin to Lightning in the first half of 2021, allowing customers to move their Bitcoin instantly and at the lowest fees.”

It took a while, but it’s finally here. As for the market, will this move the needle in favor of bitcoin? Will the world notice? According to this list, Kraken became the 23rd exchange to support the Lightning Network. Among the giants already on board are Bitfinex, OKEx, OKcoin, BitMex, and Bitstamp. Among the promising ones, BullBitcoin, Buda, CoinCorner, Kollider and Boltz.

And, since we’re on the charts, in their announcement, Kraken provided Lightning wallet recommendations:

“For example, BitcoinPay Server enables Lightning payments for merchants, which greatly improves the bitcoin payment flow. For consumers, breeze, Phoenix and Muun bring Lightning to mobile devices with a modern user experience.”

As for the importance of the move to markets and business, a pseudonymous Lightning node operator using “zero-fee routing” puts it all in perspective. “This also means that you can instantly move the lightning payment you received to Kraken to exchange it for fiat, essentially reducing your currency exchange risk to zero. This completely changes the dynamics of physical fiat stores.”

Attacking ESG FUD head-on

The increased adoption of the Lightning Network also brings with it great opportunity. The community could clean up the disgusting ESG-based narrative that bitcoin haters have been planting in mainstream media. In this regard, in the aforementioned interview, Pierre Rochard from Kraken said:

“With Lightning, you can send an off-chain payment that is much more energy efficient, not only because you are not adding miner fees and therefore the amount of miner electricity consumption, but also because that payment just has to be stored and shared by the two parties on that channel.”

Do Greenpeace and Ripple Don’t you know that most bitcoin transactions will be off-chain in a few years? Don’t they know that only the Lightning Network will take Bitcoin out of the conversation that their enemies have been carefully fabricating? Kraken certainly knows that. And he took action.

Speaking of Kraken, its CEO Jess Powell has been in the news lately. recommended buy bitcoin below $40K. During the Canadian crisis, he hinted that bitcoiners should withdraw your funds from centralized exchanges. And the refused to voluntarily ban Russian usersproviding a compelling reason to justify Kraken’s actions.

And now, his company integrated the Lightning Network.

Featured image of Ferhat Deniz Fors on Unsplash | Charts by TradingView





This post Kraken, another giant exchange integrates The Lightning Network

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