Topic: Binance announced LN integration (Read 278 times)

Of course they won't reduce the fee immediately because they are making shit load of money that way. I do expect them to reverse it to previous fee after some time though.


Since they just announced a couple of days ago, I don't think its realistic to have it already implemented.

Yes, it's a general rule of thumb: As soon as bigger business interests are involved you will hardly see any scaling attempts way BEFORE they actually are necessary. One could argue Binance reacted too late (I would agree), too many customers are already massively affected. But that's the typical way of a huge corp with its main focus on profit maximization. You'd rarely see any amazing preventitive measures just in case they would at some point in the future benefit some users. It's just not the most profitible way (most of the time).

Anyway, it's about time to see more LN support, and I really hope it's something we see more coming for a huge variety of service providers.
You still need to open / enter the payment channel with an on-chain transaction, so it's only something that will show its positive effect after more than 1 successful transaction anyway.

Now it's time for people to understand what LN is and what it could do in general. We need this kind of thing to let people understand why it's a game changer. 

And here we go: At the moment, average bitcoin transaction fee is 40 sat/vByte that means if you make a transaction with 1 input and 1 output, you'll have to pay 0.00005014 BTC that is $1.30 but Binance charges you 20 times more, 0.001 Bitcoin, $26.
What they do is so terrible, they are making tons of money, they don't tweet right now that fees have gone down and they are going to lower it again, such a shady company! And where is a Lighting Network?
ERC20 fee has gone up to $12 too but BNB Smart Chain (BEP20) still stays the same $0.10
Hope people will move away from them because they are milking their customers.

Of course, it could not have been otherwise. As I said earlier, any problem pushes to look for solutions. Binance demonstrated this. Even though the problem of high transactions didn't arise not because of them, but it still cast some shadow on their reputation, even with temporary suspensions on bitcoin withdrawal from the exchanger. The user is not interested in the sources of the problem. The user wants good service, but if bitcoin withdrawl is delayed or suspended, then the user is left unhappy. To prevent this, Binance started working on the introduction of Lightning Netwok.

Bitcoin withdrawal from Binance required a rather high commission even in calm times. With the introduction of Lightning Netwok, the commission will have to be very small amounts. This will benefit the users. Let's see what the result will be.

It will be good if other companies also begin to develop towards the introduction of Lightning Netwok. No one wants to lose their customers and most likely will.

The only thing that will force them to reduce withdrawal fees or adopt any solutions such as the Lightning Network is competition, the lack of which means that they will not change the current situation, as it brings them a lot of profits.

It is also an ideal promotion for BSC and its support. The beginner will not realize the difference between Bitcoin and tokens that they give them, the same price and cheaper fees, and therefore the higher the withdrawal fees for Bitcoin, this means more profits because people move to their SC with lower fees.

Actually it's a good promotion to absorb more users or retain existing users, while several other exchange options are starting to be looked at because they offer LN at a much lower fees. I'm not going to go into much detail predicting when binance will implement its new withdrawal method, but I think you're right that this is tough to happen. Just waiting for the state of the blockchain to recover, plans can be cancelled.

Commendable by Binance when many exchanges are supporting bitcoin lightning network. I do not want to be posting the same thing, you can see the lists of exchanges that are supporting lightning network on the below link

https://bitcointalksearch.org/topic/m.62220004

Binance and Coinbase are getting money from bitcoin transaction fee. Binance has altcoins chain which they are using to deceive people to think that they are bitcoin, but they are not bitcoin, they are only pegged with bitcoin price, they are altcoins.

Sometimes I think things like whats happening with the clogged network are needed to force the already existing technologies  such as lightning network (LN) to be integrated in all these platforms to compliment ease of use, otherwise commendable job by Binance hope other exchanges do the same asap!

You are absolutely right and the problem is that some people can't understand the games of Binance. They charge me 0.001BTC, up to $28 to withdraw Bitcoins while in reality I have to pay max 0.000155 BTC, let's say max 5$ per transaction to get it immediately confirmed. And Binance not only charges you enormous fees from absolutely every trade, they charge enormous fees for btc transactions but here they have the deal, if you hold BNB, your trading fees will go down and if you withdraw BEP format BTC, then you'll have to pat $0.01 in transaction. This clearly indicated their real motives in this business.

But it will be good if they integrate lighting network, at least they should really do something beneficial since 2017. But fees are going down right now and they just increased the withdrawal fee instead of having a flexible one, they are milking cash but they pretend they are learning from mistakes.

This step is nothing more than a media one, as the Lightning Network has existed for several years, and if they were working on developing it, it would be ready now.
Binance makes good profits from withdrawal fees and will not sacrifice those profits in order to attract customers, as customers will use that platform even if the withdrawal fees are high.

Binance also benefits indirectly, as any increase in fees means that some users will switch to alternative blockchains, which BSC will be one of the most important options.

In short, any solution that makes Bitcoin fees low is not in favor of Binance and will not support it and therefore will not support Lightning Network.

It's great for the adoption of Lightning Network and Bitcoin network overall as Binance is the No. 1 exchange in the Cryptoverse as of now.
Maybe it's added to avoid the high fee caused by BTC Ordinals? They just trying to save their own money as they make thousands of transactions per day.

I think that what an exchange cares about is their own costs and maybe an edge against the competition.
So LN makes sense for them as long as it saves their costs (not yours) or if too many other exchanges are adding it.

Now, since LN withdrawals would save them costs, they seem to add LN there. Then they have to do their math very good and see how it's cheaper for them to rebalance/replenish their LN node to keep processing withdrawals. And one solution for that could be allowing the LN deposits (now I don't know how unbalanced is their deposits vs withdrawals ratio and that matters a lot in this).


So you have a "good" history of overpaying for your transactions. This doesn't mean you should underpay exactly now, but it may worth taking a look at mempool.space now and then and also learn more about how the fees work. Maybe also make sure you use a good wallet.


Keep in mind that any reason to pause withdrawals can be in exchanges' favor (the money is in their pocket and they can use it if they want to).
And keep in mind that since the exchanges don't like to see their transactions stuck for long, such a pause may only allow them change the fixed fee they use or improve their code for a dynamic fee that works for them.


It's not that easy. People will have to open a channel (i.e. on-chain transaction) or send coins to a custodian that has also LN capabilities (i.e. again on-chain tx, unless they first receive a withdrawal). Plus learn about a new wallet.
I do still expect quite some inertia in this.


Of course that they (still) prefer people withdraw wrapped bitcoin (especially on their chain) instead of the real deal.

Well, at least there's a silver lining in this Ordinals fiasco. Thanks to it, the fees are growing exorbitant more than ever, pushing for centralized exchanges to finally support the Lightning network. In turn, when these centralized exchanges open up for Lightning deposits and withdrawals, they are also encouraging users to make use of the Lightning network. And when there are a number of users who are already into LN, surely wallets will also start integrating LN. This significantly drives up LN adoption.

However, I hope this doesn't mean that people would be satisfied and treat the high fees as a normal thing. Nothing beats on-chain transactions, after all.

It is not only Binance, a couple of other exchanges have paused bitcoin withdrawal and trying to implement the Lightening Network. Because of this challenge, many people will start using LN and many people will begin run nodes or atleast for routing.


$1 is still a high fee to pay when withdrawing $100. I cannot remember when I paid upto $0.5 for a transaction.

Many exchanges are skeptical yet to implement. Some are just asking for the opinion of their customers.

It is not clear from the tweet if they will support withdrawals and deposits via the Bitcoin Lightning Network or only withdrawals? Because the deposit will cost a high fee as well.

Yesterday I paid about 8$ to transfer 100$ BTC from my wallet (previously I used to pay around 1$), this is happening for the first time knowing that I lowered the fee to the minimum when it would have cost about 30$ on the higher rate!! This is madness!!

From my knowledge of LN (please correct me if I'm wrong) the proper way to keep a channel up "forever" is to allow both deposits and withdrawals to it.
So it would not be a surprise if they will allow deposits too, sooner or later, since they may need to re-balance their node less often if they work like that.

That's good news, I saw a thread suggesting an exchange to use when receiving Bitcoin from the signature campaign which I don't even hear that exchange before, and hard to trust.

This is a good step to combat the high fees and we hope all centralized exchanges will adopt a lightning network or people will blindly accept the high fees due to congestion.  But IMO, this is the reason why I hold my Bitcoin not to spend. 

Might there be more centralized exchanges that adopt LN that previously announced support for Lightning Network, is will somebody check it?
Like Bitfinex, Bitstamp and etc.

That would be great to see but I think they need some time to implement LN, and people should use only non-custodial wallets when this gets enabled.
Maybe more exchanges should also consider adding L-BTC and Liquid sidechain as alternative option to mainnet and Lightning Network.
I don't want to sound pessimistic but I think fees are going to get much higher than now, so everyone better get ready for that possibility.

I think that all centralized exchanges that support LN have both deposits and withdrawals in Lightning, so Binance will probably follow that practice.

 

Yeah I know, I saw it this morning when I logged in Binance. Its not a surprise though because they make nice amount of money via withdrawal fees and that's something that they won't give up easily. It will be interesting to see whetheer they revert fee to the old one after ordinals/brc20 craze passes.



Somehow I doubt it because they specifically mentioned word "withdrawals" in that tweet.