Here’s Why Exchanges Haven’t Integrated Bitcoin’s Lightning Network

The Lightning Network has been live for a few years now, but Bitcoin exchanges still haven’t joined the party — at least for the most part. Bitfinex is the most notable exception to the rule, as they added Lightning Network in December of last year.

During her appearance at the Kraken Block Drop VR Halving Party on Sunday, Lightning Labs CEO Elizabeth Stark shed some light on why the vast majority of exchanges haven’t implemented this method of paying faster, cheaper Bitcoin transfers.

“When Bitfinex launched [Lightning support] in December that was, to me, a really exciting step,” said Stark. “It was the first major exchange. There has [also] been a variety of smaller exchanges that have launched with Lightning support, and they were really blazing the trail.”

Exchanges Need Larger Transaction Capacity

According to Stark, the basic problem with the Lightning Network when it comes to adoption by exchanges comes down to the channel and transaction limits that have been…