Blog Post: CoinMENA to Integrate Lightning Network on Platform

Innovation is driving cheaper fees, faster transactions and increased use cases right to your doorstep. These advancements are a few of the benefits that CoinMENA users will be able to take part in, with the implementation of the Lightning Network on our platform. Let’s take a dive into everything you need to know about the Lightning Network and how it can benefit you.

Why do we need this and how does it work?

Many blockchain networks including Bitcoin, just aren’t scalable enough for the demands placed upon these systems by higher volumes of transactions. Thus, the Lightning Network was born. The Lightning Network is essentially a layer 2 solution that solves scalability issues. It does this by utilizing smart contracts to securely conduct individual transactions off chain, with drastically higher tps (transactions per second) capabilities. The blockchain is still available to enforce any final settlement when two parties conclude their business, thereby ensuring accountability. Whilst the Lightning Network can be applied to different blockchains, it’s most widely used for Bitcoin.

What does it do?

The integration of the Lightning Network will provide you with a range of different benefits. Transactions via lightning will be near instantaneous. You’ll no longer need to tediously wait for blockchain confirmations during busy periods on the network. Fees will be significantly reduced during these busy time periods too; this applies to withdrawals and deposits of Bitcoin as well as transaction costs.

What are the flow on effects?

Let’s take a look at some of the new functionalities that the Lightning Network can provide for CoinMENA users. With faster speeds and lower fees, the feasibility of smaller transactions and micropayments is enabled. Whilst everyday payments via cryptocurrencies isn’t yet commonplace in mainstream society, it’s something which is becoming increasingly popular as people embrace new options. By applying the Lightning Network to our platform, we set the stage to allow such innovation to occur throughout the MENA region.

By reducing fees, the Lightning Network further opens up access to digital technologies for low income users, making our platform a more inclusive player to empower the whole MENA region. The Lightning Network upgrade may also help to facilitate a wider variety of trading strategies for users, such as arbitrage for example.

The implementation of the Lightning Network is one more step forward in CoinMENA’s mission, to help proliferate the opportunities that the new digital economy can provide. This means that as a region we can collectively benefit and innovate together.