Binance has begun operating nodes on the Bitcoin Lightning Network to alleviate network congestion and facilitate deposits and withdrawals. The Lightning Network is a layer-two protocol designed to increase the speed, scalability, and privacy of Bitcoin transactions while reducing fees and congestion on the main network. Binance plans to fully integrate the Lightning Network once additional technical work is completed.
The move comes in response to the May 7th congestion on the Bitcoin network caused by a surge in BRC-20 transactions, which memecoins contributed to. In addition, Binance recently reached a consent agreement with the SEC, effectively dismissing a temporary restraining order filed by the regulator that would have frozen all Binance.US assets.
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