Chainalysis will add Lightning Network support

by in Cryptocurrency News

Chainalysis

Chainalysis analytics platform announced support for the Bitcoin Lightning Network (LN) micropayment network with its transaction tracking solution from February 2022.

"VASPs, including cryptocurrency exchanges that use Chainalysis KYT (Know Your Transaction) to monitor transactions in real-time, will be able to allow deposits and withdrawals of Bitcoin from the Lightning node in compliance with the regulations," the press release said.

Chainalysis recalled that LN is a second layer protocol that allows users to carry out transactions almost instantly and with a small commission.

The protocol has been in operation since 2018 but showed explosive growth in indicators in 2021. Over 11 months, the number of bitcoins blocked in LN channels has grown from ~ 468 BTC to just under 3,600 BTC, the company noted.

The firm's specialists believe that this is largely due to the addition of the ability to accept donations in cryptocurrency on Twitter and the legalization of bitcoin in El Salvador.

Trending: Finance Minister: El Salvador will not sell bitcoins

According to the forecast of analysts at Arcane Research, the number of active LN users by 2030 could exceed 700 million.

According to Samson Moe, director of the strategy at Blockstream, the decision has the potential to make bitcoin a global medium of exchange.

“The Lightning Network solves many of the problems that prevent the Bitcoin protocol from being used for micropayments and other types of transactions that facilitate financial integration. By providing LN transaction support to our customers, we hope to increase the popularity of the network and help it scale, ”said Pratima Arora, Product Director for Chainalysis. Chainalysis KYT will provide preliminary checks for withdrawal of funds to LN and a function of warning about suspicious behavior, the firm said.

As a reminder, in September, the media disclosed some of the methods and tools used by Chainalysis to collect information about crypto transactions and users.

Trending: Philippine authorities urge traders not to use the services of Binance

In July, after a $ 100 million Series E investment round, the company's valuation reached $ 4.2 billion.