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OKX to integrate the Bitcoin Lightning Network, enabling cheaper and faster transactions for users

2021.02.02 OKX Public Relations

Seychelles, Feb. 2, 2021 — OKX (www.okex.com), a world-leading cryptocurrency spot and derivatives exchange, is thrilled to announce the integration of the Bitcoin Lightning Network, a second-layer scaling solution based on the Bitcoin blockchain, in the coming quarter. This major development will dramatically decrease transaction fees and times, improving user experience on the exchange. Lightning integration also highlights OKX’s deep commitment to bringing the most advanced Bitcoin technology to the world — and furthering the development of the Bitcoin ecosystem.

Originally proposed by Joseph Poon and Thaddeus Dryja in 2015 as a Layer 2 scaling solution, the Lightning Network is a decentralized network that uses smart contracts on Bitcoin’s blockchain to facilitate instant payments across the network. An off-chain scalability solution to Bitcoin’s network congestion, the Lightning Network acts as a payment protocol on top of the Bitcoin blockchain, routing payments through participating nodes through a peer-to-peer system that greatly reduces transaction fees and times.

As BTC adoption becomes increasingly widespread and more users interact with the Bitcoin blockchain, the cost of transactions rises significantly, while transaction speed is greatly reduced. Currently, the average BTC on-chain fee is more than $10 and takes between 10 to 30 minutes to complete, discouraging many users from interacting with the network. Integrating Lightning with the OKX platform will allow users to send and receive BTC in near real-time at next-to-no cost.

As OKX becomes a participant node in the Lightning Network, users will be able to select the Lightning Network option when depositing and withdrawing BTC.

“OKX is extremely proud to be one of the first major exchanges to integrate the Lightning Network. We are always looking for new ways of decreasing user transaction fees and times. By integrating Layer 2 payment protocols like the Lightning Network, we can offer more competitive products to our users and, at the same time, openly demonstrate our support for the Bitcoin network by increasing the number of participant nodes in the Lightning Network,” commented OKX CEO Jay Hao.

“OKX’s Lightning integration marks a big step for its users and the Bitcoin community as a whole, enabling instant, global, low-fee transactions. OKX’s leadership in adopting Lightning will help bring Bitcoin to the next billion people around the world,” said Elizabeth Stark, co-founder and CEO of Lightning Labs.


About OKX

A world-leading cryptocurrency spot and derivatives exchange, OKX offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks. We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.

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Vivien Choi
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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.