According to TechFlow, Bitcoin infrastructure company Blockstream's Core Lightning launched the Splicing feature, providing a cheaper and simplified user experience for setting up and using its Bitcoin Lightning wallet.
Splicing technology enables users to add or remove funds to a single channel, eliminating the need for multiple channels per user and improving liquidity. This feature also allows wallet providers to abstract the difference between a user's on-chain Bitcoin and Lightning Network balances by creating a unified wallet, thereby significantly reducing the distinction between the two.