Binance to integrate lightning network

[Yamane_Keto]

From a business perspective, they're being really aggressive to encourage users to use their network. Would be funny if it backfires because one of their validators got exploited or fail later on.

It won't because they can simply perform a hard fork and restart the network by deleting the malicious validator.

They should educate people more about wrapped tokens if they wanted to do it this way.

I am afraid that there will be an option to withdraw wrapped tokens on the Lightning Network, that they obtain bitcoins from customers and sell them fake tokens that have no guaranteed value, and just because its value is equal to 1 bitcoin, this does not mean that it has value.

I went to Binance academic to find out about the risks and they didn't mention much:

While Bitcoin has some fantastic properties, it isn’t the fastest and can sometimes be expensive to use. While that’s fine for what it is, it can cause some headaches sometimes. These issues can be mitigated by using a wrapped version on a blockchain with faster transaction times and lower fees.
The implementations of these tokens can be very different. We wrote about them in more detail in our tokenized Bitcoin article.

https://academy.binance.com/en/articles/what-are-wrapped-tokens

[joniboini]

It won't because they can simply perform a hard fork and restart the network by deleting the malicious validator.

At the very least there would be some discussion about it. Seeing how they fail to obtain licenses left and right lately, things like that might become additional problems that can snowball and affect their reputation. But yeah, we'll see when it does happen.

I went to Binance academic to find out about the risks and they didn't mention much:

That is not surprising. It is obviously against their interest to explicitly mention the risk of wrapped tokens. People should look at other sources if they want a better comparison since some academy or learning resources might be skewed if they are owned by exchange or other crypto services.

[Rikafip]

If other exchanges follow Binance to integrate lightning network payment for bitcoin transaction, more people will use lightning network.

There's already quite a few exchanges that integrated lightning network like Kraken, Bitfinex, Bithumb, Bitstamp, OkeX, Bitmex etc (you can gind full list here so Binance is not really leader in that regard.

With that being said, Binance has by far the most users so them implemeting LN will have more effect than the others. Another big exchanges that sort of announced that they plan to implement LN (their CEO mentioned it few months ago) but unfortunately no news regarding that.

[Oshosondy]

I am afraid that there will be an option to withdraw wrapped tokens on the Lightning Network, that they obtain bitcoins from customers and sell them fake tokens that have no guaranteed value, and just because its value is equal to 1 bitcoin, this does not mean that it has value.

Wrapped token on lightning network? It is not a matter of guessing, it is not possible.

If other exchanges follow Binance to integrate lightning network payment for bitcoin transaction, more people will use lightning network.

There's already quite a few exchanges that integrated lightning network like Kraken, Bitfinex, Bithumb, Bitstamp, OkeX, Bitmex etc (you can gind full list here so Binance is not really leader in that regard.

With that being said, Binance has by far the most users so them implemeting LN will have more effect than the others. Another big exchanges that sort of announced that they plan to implement LN (their CEO mentioned it few months ago) but unfortunately no news regarding that.

We have talked about this in some threads in the past, you can check a topic I posted long time ago about exchanges that are supporting lightning network for people to take advantage of low fee lightning network on such exchangs:

Using lightning for bitcoin low fee on exchanges

Also another is the lists on this thread:

Congested mempool & LN

But just that to every wallet and exchange that is supporting lightning network for bitcoin payment, lightning network usage will increase. And as you said, Binance is not a small exchange, it is the biggest exchange in the world and which will help in lightning network usage.