Bitfinex, a Hong Kong-based cryptocurrency exchange, announced support for Lightning Network deposits and withdrawals becoming the first exchange in the industry to do so.
Bitfinex adds support for the Lightning Network
The Lightning Network is a second layer solution to Bitcoin’s scalability problem. It was created by Lightning Labs, a San Francisco-based company building the next generation of decentralized financial infrastructure.
The idea behind it was to increase the transaction throughput of BTC’s blockchain network. This open-source protocol enables instant payments at exceptionally low fees with millions to billions of transactions per second, and cross-chain atomic swaps.
Starting on Dec. 3, Bitfinex will add support for Lightning Network deposits and withdrawals. The new feature would be offered to all users who would begin to enjoy faster and cheaper transactions. And, those running their own Lightning Node would also be able to connect with Bitfinex’s Lightning Node.
According to Paolo Ardoino, chief technology officer at Bitfinex, by integrating the Lightning Network to the platform, the company is pushing forward the adoption of Bitcoin.
“Our industry has always been brought forward by brave people [and] Bitfinex [is now doing] its part.”
Earlier last month, one of the lead investors at DTC Capital, Spencer Noon, noted that 2019 hasn’t been the “year of the Lightning Network.” He argued that the network’s statistics showed that its growth was mostly stagnant throughout the year. Noon believes the stagnation is a result of having a good product for the wrong market, as Bitcoin‘s value proposition is its ability to act as a stable, long-term investment vehicle.
The move to add support for the Lightning Network by Bitfinex could create a ripple effect across the industry. Other cryptocurrency exchanges would likely seek to remain competitive and eventually support this second layer solution as well. With more users joining the network, its growth could be about to experience a massive spike.
Like what you see? Subscribe to CryptoSlate
Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.
After Ali began forex trading in 2012 In 2014, he came across Bitcoin’s whitepaper and was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started buying Bitcoin. By 2015, he started traveling to spread the word about Bitcoin.
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Like what you read? Give us one like or share it to your friends