The expansion of bitcoin second layer scaling solutions into the exchange ecosystem has been a slow one and for good reason. Exchanges are more focused on listing as many shitcoins as they can to keep the casino open and attracing fresh meat all the time, rather than catering to people who want to take non-custodial holding of their funds.

We've seen exchanges like crypto.com and binance become neo banks and instead of focusing on making it cheaper and faster for people to hold their bitcoin, they are allowing people to spend their bitcoin directly from the exchange and capture customers in their walled garden.

If exchanges adopt the likes of liquid and lightning it means, cheaper and faster bitcoin on-ramps and off-ramps which means less fees and less liquidity they can misuse on their books.

That impacts their bottom line and you can see that by the lack of adoption of these solutions that provide a massive benefit to the individual.

## Kraken finally fulfilling promises 

Lightning has been supported by bitcoin only exchanges and the only large shitcoin exchange using it is Bitfinex, Kraken had been talking about adopting it for two years and made excuse after excuse but this month things changed.

The San Francisco-based company Kraken, one of the oldest exchanges in the market, threw its hat into the ring of Lightning Network, which was introduced earlier in 2018 to solve Bitcoin’s scalability problem but took over years before launching their support. 

In fact bitcoiners broke the news finding it available before Kraken even announced it.

![krakenln.png](https://images.hive.blog/DQmdM1p8bnRpqhxqDqqR8AyZiQmotDfDpUW4dETJ1qX2avy/kraken-ln.png)

<blockquote class="twitter-tweet"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>’s Lightning Network is growing ⚡ 🚀<br><br>Kraken is excited to announce that all clients are now able to use the Lightning Network!!<br> <br>✅ Instant deposits and withdrawals<br>✅ Ultra-low network fees<a href="https://t.co/sEtBjTnX8r">https://t.co/sEtBjTnX8r</a> <a href="https://t.co/25xpdw8BsN">pic.twitter.com/25xpdw8BsN</a></p>&mdash; Kraken Exchange (@krakenfx) <a href="https://twitter.com/krakenfx/status/1509901663536041988?ref_src=twsrc%5Etfw">April 1, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

## How Kraken added lightning 

Kraken joined the Lightning Network and runs its own Lightning node, which you can establish a channel with to fund or withdraw bitcoin instantly and cheaply. 

The company said all of its clients can now use the new integration to deposits and withdrawals of up to 0.1 BTC, or 10 million satoshis, per transfer. This makes sense because lightning is for smaller transactions and if you're doing anything more than 10 million sats it's more effective to use the base chain. 

Kraken leveraged Lightning Labs’ node implementation, LND, due to the API interface it exposes and the extensive developer documentation the project, but there are other versions of lightning like Core Lightning and Eclair which are all compatible with one another. 

## Lightning expanding to hive

Having lightning support with exchanges means you can easily get into hive now with [v4v swaps](/hive-167922/@chekohler/the-quickest-way-to-get-in-and-out-of-hive). Instead of having to wait for exchanges to support Hive, you can just buy bitcoin and swap it instantly into hive and vice versa. 

## Have your say

What do you good people of HIVE think? 

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

## Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler  and subscribe to my [fanbase](https://hive.vote/dash.php?i=2&fan=chekohler)


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