Binance to Enable Bitcoin Lightning Network Withdrawals After Pending Transactions Halt
Binance has announced plans to enable Bitcoin lightning network withdrawals for its users following issues arising from the volume of pending transactions.
In a Twitter thread on May 8th, Binance disclosed that it had temporarily halted BTC withdrawals due to a massive backlog of pending transactions. It explained that there were numerous withdrawal transactions yet to be processed, and the recent surge in BTC gas fees had caused the failure.
To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and adjust accordingly if needed.
Our team has also been working on enabling BTC Lightning Network withdrawals, which will help in such situations.
— Binance (@binance) May 8, 2023
The exchange also revealed that it would replace the pending transactions with higher fees to allow mining pools to process them. After approximately two hours, the exchange resumed BTC withdrawals, stating that it had increased transaction fees.
To prevent a similar occurrence in the future, Binance revealed that it had adjusted its fees and would continue to monitor on-chain activity and adjust accordingly if needed.
This is not the first time that Binance has had to pause BTC withdrawals. The exchange had paused withdrawals on May 7th for about an hour, citing network congestion issues.
In addition, Binance has also experienced technical issues with deposits and withdrawals of other digital assets. In December 2022, the exchange paused USDC withdrawals due to a token swap involving the Circle-backed stablecoin.
The move to enable BTC lightning network withdrawals is a significant step for Binance, which has been plagued by technical challenges and regulatory issues in recent years. Lightning Network is a layer-two scaling solution for Bitcoin, aimed at improving transaction speed and reducing fees.
In conclusion, Binance’s decision to enable BTC lightning network withdrawals is a positive step for the exchange and its users. It is a clear indication that the exchange is committed to improving its services and providing its users with better experiences. With the implementation of lightning network withdrawals, the exchange hopes to avoid future incidents of pending transactions and provide faster and cheaper withdrawals for its users.
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