Bitfinex has announced a groundbreaking development in the crypto world by introducing Lightning Channels, marking a significant evolution in cutting-edge trading exchanges with LN integrations. In collaboration with Synonym_to and Blocktank, the crypto platform now offers users the ability to configure and purchase Lightning connections, enabling instant deposits and withdrawals.
In the blog post, Bitfinex proudly declared its position as the first exchange to provide Lightning Channels. The collaboration with Synonym, a sister company launched in 2021, has led to the introduction of a novel feature allowing Bitfinex customers to instantly configure and purchase Lightning connections, commonly referred to as inbound channels.
This formidable alliance has not only streamlined the deposit and withdrawal processes for Bitfinex customers through the Lightning Network but has also facilitated the purchase of Lightning channels through its integration with Blocktank.
Blocktank, launched by Synonym in early 2023, operates as a full-service Lightning Service Provider [LSP]. It addresses the complexities faced by Lightning Network adopters by offering liquidity and channel management services. Integrated within Bitkit, Synonym’s self-custodial wallet, Blocktank empowers users to access the LN’s benefits, including fast transactions, low fees, and instant settlement, while maintaining self-sovereignty.
Bitfinex customers utilizing Blocktank can swiftly establish robust and liquid channels, ensuring a high success rate for payments and immediate access to spending balances. This move reflects a commitment to providing users with a seamless and efficient experience within the Lightning Network ecosystem.
Bitfinex
Four years ago, the crypto exchange integrated Lightning Network’s Wumbo Channels to fast-track payment transaction times, enabling instant Bitcoin deposits and withdrawals. Initially, the protocol developers imposed a hard cap on channel capacity to protect users from potential bugs in the nascent network. However, with the maturation of the second-layer scalability solution, major implementations of the Lightning Network protocol have removed this cap, allowing for unlimited channel sizes and payment amounts.
Bitfinex CEO Paolo Ardiono celebrated this latest release, highlighting it as “another step towards delivering financial freedom.” The collaboration between Bitfinex, Synonym, and Blocktank underscores the ongoing efforts to enhance user experience and accessibility within the rapidly advancing crypto landscape.