{"id":10313,"date":"2022-03-31T13:30:00","date_gmt":"2022-03-31T13:30:00","guid":{"rendered":"http:\/\/ci029d77b640002627"},"modified":"2022-03-31T13:30:00","modified_gmt":"2022-03-31T13:30:00","slug":"kraken-exchange-integrates-bitcoins-lightning-network","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/kraken-exchange-integrates-bitcoins-lightning-network","title":{"rendered":"Kraken Exchange Integrates Bitcoin\u2019s Lightning Network"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><ul>\n<li>Kraken has integrated Bitcoin\u2019s Lightning Network.<\/li>\n<li>Customers can now deposit and withdraw up to 0.1 BTC with instant and cheap Lightning payments.<\/li>\n<li>Kraken is running an LND Lightning node.<\/li>\n<\/ul>\n<p>Cryptocurrency exchange Kraken now supports Bitcoin\u2019s Lightning Network for inexpensive and instant customer deposits and withdrawals of BTC, the company said in a statement sent to <em>Bitcoin Magazine<\/em>.<\/p>\n<p>\u201cAdoption is going to come from people who have fiat in their bank account, and they need to get it into Bitcoin,\u201d Pierre Rochard, Bitcoin product manager at Kraken, told <em>Bitcoin Magazine<\/em>. \u201cKraken is providing an excellent venue for them to do that, and then they can top up their mobile Lightning wallet and use it as a medium of exchange. That\u2019s clearly the next step in terms of Bitcoin\u2019s evolution.\u201d<\/p>\n<p>Kraken joined the Lightning Network with <a href=\"https:\/\/amboss.space\/node\/02f1a8c87607f415c8f22c00593002775941dea48869ce23096af27b0cfdcc0b69\" target=\"_blank\" rel=\"noopener\">its own Lightning node<\/a>. The company said all of its clients can now use the new integration, which allows deposits and withdrawals of up to 0.1 BTC, or 10 million satoshis, per transfer.<\/p>\n<p>\u201cLightning is a lot more efficient than on-chain Bitcoin while also still relying on on-chain Bitcoin\u2019s security, so it really is the best of both worlds,\u201d Rochard said.<\/p>\n<p>Lightning<a href=\"https:\/\/bitcoinmagazine.com\/culture\/bitcoin-default-digital-reserve-currency\"> enables cheap and fast bitcoin transactions<\/a> by leveraging smart contracts to abstract small and frequent payments away from the Bitcoin network base layer. That abstraction occurs in the form of<a href=\"https:\/\/bitcoinmagazine.com\/guides\/how-does-the-lightning-network-work\"> payment channels<\/a>, in which users lock up bitcoin on-chain by creating 2-of-2<a href=\"https:\/\/en.bitcoin.it\/wiki\/Multi-signature\" target=\"_blank\" rel=\"noopener\"> multisig<\/a> addresses, which they can then use to transfer funds to one another off-chain.<\/p>\n<p>\u201cWith Lightning, you can send a payment off-chain that is much more energy efficient, not only because you\u2019re not adding the miner fees, and thus the amount of electricity consumption by miners, but also because that payment only has to be stored and shared by the two parties in that channel,\u201d Rochard said.<\/p>\n<p>Lightning hence scales the Bitcoin blockchain as a second layer and empowers BTC to be better used as a medium of exchange by establishing an overlay network of payment channels indirectly connected with each other that can theoretically perform millions of transactions per second as bitcoin is routed across channels from sender to recipient.<\/p>\n<p>Kraken leveraged Lightning Labs\u2019 node implementation, LND, due to the API interface it exposes and the extensive developer documentation the project makes available, Rochard said.<\/p>\n<p>\u201cIt has been a really great experience because they do have a fully featured API and they are one of the oldest implementations of the Lightning protocol,\u201d Rochard said. \u201cThey have the largest user base and we have a lot of people on the network that have lots of experience with LND. So it has proven to be easy to use and very reliable as well.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kraken customers can now instantly deposit and withdraw bitcoin with nearly no fees through the Lightning Network.<\/p>\n","protected":false},"author":2572,"featured_media":10314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[361,760,460,93],"class_list":{"0":"post-10313","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-exchange","9":"tag-kraken","10":"tag-lightning-network","11":"tag-news"},"author_data":{"id":2572,"name":"Namcios","nicename":"namcios","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/pfp-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/kraken-advances-uk-expansion-with-the-acquisition-of-futures-platform.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/10313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2572"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=10313"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/10313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/10314"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=10313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=10313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=10313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}