Bitfinex, a Hong Kong-based cryptocurrency exchange, has announced support for deposits and withdrawals in Lightning Network, becoming the first exchange in the industry to do so.
Bitfinex Adds Lightning Network Support
The Lightning Network is the second level solution to the scalability problem of Bitcoin. It was created by Lightning Labs, based in San Francisco, and is creating a new generation of decentralized financial infrastructure.
The idea was to increase the transaction throughput of a BTC network with a block chain. This open source protocol allows instant payments at extremely low fees with millions and billions of transactions per second and atomic swaps.
Starting December 3, Bitfinex will add support for replenishing and withdrawing funds from the Lightning Network. The new feature will be offered to all users who will begin to enjoy faster and cheaper transactions. And those with their own Lightning Node will also be able to connect to Bitfinex's Lightning Node.
According to Paolo Ardoino, Chief Technology Officer of Bitfinex, by integrating the Lightning Network into the platform, the company is promoting the adaptation of Bitcoin and cryptocurrencies.
Ardoino stated:
“Our industry has always been promoted by brave people [and] Bitfinex [is now] doing its part.”
Earlier last month, one of DTC Capital’s leading investors, Spencer Nun, noted that 2019 was not “the year of the Lightning Network.” He argued that network statistics showed that its growth basically remained unchanged throughout the year. Noon believes that stagnation is the result of having a good product for the wrong market, since Bitcoin's valuable offer is its ability to act as a stable, long-term investment tool.
The Bitfinex Lightning Network support movement can create a ripple effect in the industry. Other cryptocurrency exchanges are likely to seek to remain competitive and ultimately will also support this second-tier solution. With the increase in the number of users joining the network, its growth can increase significantly.