Bitfinex Becomes First Major Exchange to Add Lightning Network Support
Crypto exchange Bitfinex has added Lightning Network (LN) support to its platform for Bitcoin transactions.
This is a major update on the platform and was confirmed by Paolo Ardoino, the chief technology officer of the exchange, on Tuesday on Twitter.
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LN and LN assets are not only the best P2P micro-payments solution, but an impressive settlement layer for [email protected] leads the way. https://t.co/fzblyAtkCG
— Paolo Ardoino (@paoloardoino) December 3, 2019
Scaling the massive blockchain
First proposed in 2016, Lightning Network is a second layer protocol for Bitcoin payments. It was introduced to increase the scalability of the original blockchain network by taking the transaction away from the main blockchain. The feature was functional on Bitcoin since early 2018.
Mainly designed to handle micro day-to-day payments, the protocol also drastically reduces the transaction fees.
Though many small blockchain companies implemented Lightning Network on their platform, Bitfinex will be the first major exchange to fully embrace the technology.
In an interview with The Block, Ardoino said: “In Bitfinex, we think that it [the Lightning Network] can be the game-changer of our industry since it enables P2P micro-payments with small fees and high throughput. Its P2P nature carries the unstoppable force of bitcoin. Still, it requires more awareness, understanding, and adoption from the larger crypto community. A major exchange supporting it will speed up this adoption process.”
To use the newly added feature, traders need to go to the LN deposit page and create an invoice to fund their accounts.
The account of the user will be credited with LNX, a proprietary digital token of the exchange, once the transfer of Bitcoin from any LN compatible wallet has been made. The LNX can be converted to Bitcoin by Bitfinex users without any premium charge.
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