The global crypto exchange, Bitfinex, and Lightning Network infrastructure provider, Synonym, announced a strategic partnership this week. The goal of the maneuver is to streamline the adoption of the Lightning Network by lowering the technical requirements to use the second layer protocol. In the past, these technical roadblocks such as setting up a channel have hindered adoption.
Premier LN Node Provider
Bitfinex, which is already a premier LN node operator, leveraged its community and ecosystem to become a leading LN-integrated CEX option. Already, Bitfinex handles +12k monthly transactions with their channels averaging around 800 BTC in liquidity.
As part of the maneuver, Bitfinex and Synonym subsidiary Blocktank node created a streamlined onboarding process. In the past, users needed to create and fund a channel to send and receive lighting network payments. This process requires the channel to hold as much crypto as the payment volume.
In many instances, this process became conflated to new users who would find it difficult to deal with liquidity limits set by lack of channel funding and other issues. This new system eliminates all the requirements to create and fund a channel. As such, anyone can now leverage the Lightning Network to enjoy instant deposits, withdrawals, and payments on Bitfinex and beyond.
Lightning Network Integrations
This announcement comes on the heels of record-high Lightning Network CEX integrations. The majority of these integrations enabled the Lightning Network to reduce deposit and withdrawal costs. Bitfinex takes the concept a step further with its latest offering.
In a recent interview, the Chief Technology Officer of Bitfinex, Paolo Ardoino, discussed how the move was a pioneering effort that will benefit all parties. He spoke on how the new system reduces confusion and helps to entice new users. The CEO of Synonym also chimed in on the partnership. He spoke on the benefits of providing easier access to high-performance Lightning Network options. He also described how improving transaction times empowers crypto users and improves the overall performance of the market.
Users will be able to send and receive LN payments with just a click after integrating the BitKit wallet and new features. The wallet offers an easy-to-navigate interface that provides direct access to the most used services and info needed. Best of all, it includes a simplistic LN channel setup process.
Rise of Lightning Network Service Providers
Platforms like Synonym continue to see growing interest from larger firms as they continue to implement low-cost LN-powered solutions. The firm's decision to launch Blocktank in April 2022 was a smart move that has paid off greatly. Notably, the Blocktank system includes a widget, API, and a variety of open-source Github repositories alongside the new channel.
Bitfinex Remains a Pioneering Force
Bitfinex continues to drive innovation in the sector. This popular CEX was the first to introduce Tether and the concept of fiat-backed stable coins into large exchanges. Today, it remains a creative project that seeks to push the boundaries of blockchain technology even further to improve everyday life for crypto users.