The cryptocurrency exchange OKEx comes up with the support for Bitcoin’s Lightning Network in the upcoming weeks. OKEx said that the move is to activate the cheaper and faster transactions for users.
Most importantly, bitcoin deposits and withdrawals are going to get cheaper, as the exchange says.
The current average cost for a Bitcoin transaction is near $11, and the average confirmation time is 10-30 minutes.
According to Jay Hao, this is quite impractical for the users to join the network.
Along with the Lightning Network of Bitcoin, a layer with the scaling solution is going to come up with an average cost of 0.01 cents. And the average confirmation time is going to be 1-3 seconds.
It is going to come up with huge benefits. However, there are limitations for the Lightning Network. It is only for micro-transactions.
Hao said, “For now, we are setting the limit at 0.000001 BTC to 0.05 BTC [$0.035 to $1,770].”
For deposits, OKEx is not having control over the limit, “but when you withdraw on another Lightning Network node to that deposit, that node will have similar limits,” said Hao.
OKEx is partnering with Lightning Labs for the integration, which means the exchange is about to become one of the nodes on Lightning Network.
The network comes with nodes to send and receive bitcoin from each other. The nodes are open for the payment channels with an increase in liquidity. There are more than 8600 nodes, along with payment channels.
A number of crypto exchanges came up in support of the lightning network in recent weeks. It includes Kraken, Bitfinex, Bitstamp, and various other exchanges that support the feature.