Bitcoin

Kraken users report Bitcoin Lightning Network availability

03/30/2022
Bitcoin Ethereum News

Major American cryptocurrency exchange Kraken reportedly started implementing the Bitcoin (BTC) Lightning Network for users a bit later than the firm originally planned.

Bitcoin maximalist Mr.Hodl took to Twitter on Wednesday to report that Kraken has implemented the Lightning Network. He attached a screenshot of the supposed new Kraken withdrawal process allowing users to complete a withdrawal request from a Lightning wallet to receive BTC from their accounts.

“The Lightning network runs on top of the Bitcoin blockchain to enable more uses of Bitcoin,” Kraken’s withdrawal notice on the screenshot reads.

It appears that no other Kraken users have reported the supposed BTC Lightning implementation on the platform so far. Instead, some Kraken customers said that they didn’t have the Lightning option to withdraw BTC as of Tuesday, suggesting that the Lightning implementation should be extended for all accounts within 24 hours. 

The first reports on Kraken’s BTC Lightning application surfaced in mid-March, with cryptocurrency enthusiasts suggesting the implementation start based on data from the Lightning Network explorer known as Amboss.

A spokesperson for Amboss told Cointelegraph on March 16 that the explorer received a “network gossip” broadcasting its node alias as Kraken with an octopus and a lightning emoji, noting that any node could theoretically change their alias and act as an imposter. “But this is already a very large node at 7 BTC in capacity,” the representative said, adding:

“Kraken has not contacted us to verify that this node is theirs using our standard Twitter plus digital signature verification process to prove ownership. However, judging by the restrictive channel policies, their choice of channel peers and the size of their nodes and channels, this appears to be legitimate.”

At the time of writing, the total capacity of Kraken’s alleged node alias capacity on Lightning amounts to more than 2.8 billion satoshis, or 28 BTC, according to Amboss data.

A spokesperson for Kraken declined to directly confirm or deny the implementation to Cointelegraph, noting that the exchange has long been aiming to fully support Bitcoin’s Lightning Network. “Instant settlement not only allows traders to execute more efficient arbitrage strategies using Bitcoin but enables consumers to use Bitcoin as a practical means of exchange as well as a store of value asset,” the representative noted, stating:

“As a platform that prides itself on being at the cutting edge of innovation without ever sacrificing on the security and quality of the overall exchange offering, Kraken sees lightning integration as a natural step to take.”

As previously reported, Kraken officially announced plans to integrate the Bitcoin Lightning Network in late 2020, scheduling the implementation for 2021. Some crypto observers chuckled about exchanges like Kraken taking long to integrate Lightning as some candidates for the United States Congress have managed to adopt it before.

Related: Bitcoin transaction fees briefly doubled yet remain exceptionally low

Released in March 2018, the Lightning Network is a Bitcoin layer-two protocol designed to provide faster and cheaper BTC transactions. Bitfinex is believed to be the first crypto exchange in the world to enable Lightning payments by integrating the protocol in December 2019.