Kraken has previously said that the Bitcoin Lightning Network will be implemented in 2021, after revealing the proposal in late 2020.
Kraken, a major American cryptocurrency exchange, is said to have started deploying the Bitcoin (BTC) Lightning Network for consumers later than expected.
Mr.Hodl, a Bitcoin maximalist, announced on Twitter on Wednesday that Kraken has adopted the Lightning Network. He sent a screenshot of the ostensibly new Kraken withdrawal procedure, which allows customers to send a withdrawal request using a Lightning wallet in order to obtain BTC from their accounts.
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On the screenshot, Kraken’s withdrawal notification states, “The Lightning network sits on top of the Bitcoin blockchain to allow further applications of Bitcoin.”
It’s official! @krakenfx has implemented the Lightning Network.
Congrats @jespow, @brianchoffman, @BitcoinIsSaving and the rest of the Kraken guys.
(Screw Dan Held though 🤣) https://t.co/tF5CP7JB5A pic.twitter.com/6LikdzdJ18
— Mr.Hodl 🌕🍿 (@MrHodl) March 29, 2022
So yet, no additional Kraken users have reported the alleged installation of BTC Lightning on the site. Instead, as of Tuesday, some Kraken users stated they couldn’t withdraw BTC using Lightning, implying that the Lightning functionality should be extended to all accounts within 24 hours.
The initial reports about Kraken’s BTC Lightning application appeared in mid-March, with cryptocurrency aficionados predicting a commencement date based on data from the Amboss Lightning Network explorer.
On March 16, an Amboss spokesman informed that the explorer got “network chatter” displaying its node alias as Kraken with an octopus and a lightning emoji, adding that any node could theoretically modify its alias and operate as an impostor. “However, with a capacity of 7 BTC, this is already a pretty huge node,” the spokesman explained, adding:
Kraken has not contacted us to confirm ownership of this node using our usual Twitter plus digital signature verification approach. However, based on their rigorous channel regulations, channel peer selection, and node and channel size, this looks to be valid.
According to Amboss statistics, the overall capacity of Kraken’s purported node alias capacity on Lightning is over 2.8 billion satoshis, or 28 BTC, at the time of writing.
A Kraken spokeswoman declined to confirm or deny the installation, stating that the exchange has always aimed to fully support Bitcoin’s Lightning Network. “Not only does instant settlement allow traders to conduct more effective arbitrage strategies using Bitcoin, but it also allows consumers to use Bitcoin as a practical means of exchange and a store of value asset,” the spokesperson explained.
Kraken views lightning integration as a logical move for a platform that prides itself on being on the leading edge of innovation without jeopardizing the security and integrity of its entire exchange offering.
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Kraken revealed intentions to incorporate the Bitcoin Lightning Network in late 2020, with deployment set for 2021, as previously reported. Certain crypto analysts giggled at the fact that exchanges like Kraken are taking so long to incorporate Lightning, given that some candidates for the US Congress have already done so.
A candidate for US Congress adopted Lightning before Binance, Coinbase, Robinhood, And Kraken.#Bitcoin pic.twitter.com/i2e5G2rTOj
— Dennis Porter (@Dennis_Porter_) November 30, 2021
The Lightning Network is a Bitcoin layer-two protocol that was released in March 2018 with the goal of making BTC transactions quicker and cheaper. By implementing the Lightning protocol in December 2019, Bitfinex is said to be the first crypto exchange in the world to enable Lightning payments.