Chainalysis, a blockchain data platform, announced today that it will support the Lightning Network, the Lightning Network is a decentralised system for high-volume, rapid micropayments that does not rely on third-party cash custody. Using Lightning lets users to make smaller payments, such as tips and remittances, that may be completed instantaneously and scalably using Bitcoin — the most widely used and most highly appreciated virtual asset in the world.
According to Chainalysis statistics, as of December 1, 2021, a little under 3,600 bitcoins worth more than $205 million had been locked in public Lightning Network channels, an increase from 468 bitcoins worth around $4.8 million on January 1, 2021.
In contrast to bitcoin payment system, a second-layer protocol built on top of the bitcoin blockchain that allows for quick, low-cost transactions. Despite the fact that the Lightning Network was launched in 2018, governments and organisations, such as El Salvador and Twitter, have recently accepted Lightning solutions for payments, propelling adoption to new heights.
Cryptocurrency exchanges and other VASPs that rely on Chainalysis KYT (Know Your Transaction) for real-time transaction monitoring will be able to accept Bitcoin deposits and withdrawals from Lightning nodes in a compliant fashion.
“Chainalysis exists to establish trust in cryptocurrencies in order to provide more financial independence with less risk”
When used in conjunction with the Bitcoin protocol, the Lightning Network removes many of the roadblocks that prevent the protocol from being used for micropayments and other types of financial inclusion activities. It is our intention to promote the popularity of the network and assist it in scaling by allowing our customers to compliantly support Lightning transactions.
Explained Pratima Arora, Chainalysis’ Chief Product Officer.
For the first time, VASPs may now handle Lightning transactions in compliance with worldwide regulatory best practises, which is a significant advancement. A pre-screening process will be carried out by Chainalysis KYT for lightning withdrawals and behavioural alarms.
As one of the world’s most popular blockchain-based gaming and betting platforms, a significant portion of our revenue is contingent on our ability to extend our customers’ cryptocurrency payments,” We are pleased with Chainalysis’ Lightning Network support since it provides us with the compliance tools we require in order to safely use Lightning to grow our business and improve the payments user experience for our consumers.
said Reio Piller, Co-founder and Chief Technology Officer of Yolo Group.
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