Bitfinex Crypto Exchange Integrates Bitcoin Lightning Network Deposits and Withdrawals

Bitfinex becomes the first major crypto exchange to integrate Lightning Network deposits and withdrawals fully; the exchange announced this news in an email sent across on Monday, December 2, 2019.

Per the report, Bitfinex is offering the Lightning Network deposits and withdrawals starting December 3rd (today), which just enabled its users to deposit and withdraw bitcoins on the exchange at lightning speed. Essentially, the lightning network is the second layer on the Bitcoin’s blockchain that scale the blockchain’s capability to perform transactions.

Bitfinex Plans to Bring Stablecoin on Lightning Network

The news follows a slew of rumors since last month that is reportedly eyeing at the forthcoming plan of Bitfinex crypto exchange. This being said, a prominent crypto community member, WhalePanda, unveiled the hidden strategies of Bitfinex. Accordingly, the WhalePanda on Twitter shared a picture of the announcement with a message, reading as;

The exchange has undoubtedly excited the crypto community with the integration of Lightning Network – what’s more, it aims to bring the protocol to the masses. Speaking about the alliance, Bitfinex CTO Paolo Ardoino said;

“In Bitfinex, we think that it [the Lightning Network] can be the game-changer of our industry since it enables P2P micro-payments with small fees and high throughput. Its P2P nature carries the unstoppable force of bitcoin. Still, it requires more awareness, understanding, and adoption from the larger crypto community. A major exchange supporting it will speed up this adoption process,”

Besides Bitcoin on the network, Ardoino also asserts that the exchange is aiming to bring its Tether stablecoin and gold-back stablecoin Tether Gold on the Lightning network. Accordingly, they are currently working with a team of developers and companies called RGB.

Moreover, Bitcoin core developer Jameson Lopp as acknowledged the development and stated that the exchange had become the first significant crypto player to implement Lightning Network deposits and withdrawals.

Besides, Ardoino, in an interview with Bitcoin Magazine, emphasized that the firm will not charge any premium fees or conversion rate for exchanging second layer satoshis for mainchain BTC/vice versa – however, a small regular fee will be applicable when users process a withdrawal.

From a technical standpoint, they are currently running LND, the client developed by Lightning Network Labs, but they’re also hoping to integrate other implementation. However, according to CTO, the exchange entered into a partnership to integrate the Lightning Network feature, and further details on the partnership deal will be announced on December 4, 2019.

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