The Lightning Network got some rave reviews this week after its premier debut on the popular crypto exchange Bitfinex. The platform integrated the second-layer protocol last week much to the pleasure of Bitcoiners globally. The news showcases the further expansion of the scaling solution, as well as, stronger positioning for Bitfinex within the sector.
The decision to integrate the Lightning Network into the Bitfinex platform follows the larger trend of developers pushing Bitcoin scaling solutions. Bitfinex has been at the forefront of this movement. The platform integrated bech32 (SegWit) addresses last month as a primary step toward the full Lightning integration.
Bitfinex announced the integration via Twitter. In the post, the firm describes what the Lightning Network is, and how it functions. The post also explains that Bitfinex now runs a Lightning node that users can connect with to make payments. Lastly, the post lets users know that they can start using the scaling solution immediately. It also offers a link to find out more info on the integration.
Bitfinex Lights Up the Holidays
The Lightning Network community was quick to respond with overwhelming support for the decision. According to company executives, there were more than 800 transactions that took place on the off-chain scaling solution since the integration took place. Notably, around 600 of the transaction have been deposits. In total, customers deposited more than seven Bitcoin to the exchange.
Speaking on the success of the project, Bitfinex’s Chief Technical Officer, Paolo Ardoino stated that the network “works like a charm!” Both SegWit and the Lightning Network allows Bitcoin transactions to utilize less space on the blockchain. This strategy decreases congestion on the blockchain. Reducing the transaction size allows developers to improve efficiency without the need to increase the chain’s capacity.
Importantly, Bitfinex is the first major crypto-asset trading venue to offer Bitcoin deposits via the Lightning Network. In the past, Lightning Network developers cautioned against using the network for larger transactions. Today, the network is more secure than ever before.
The Power of Micro-Transactions
One cannot overstate the importance of micro-transactions in an economy. The Lightning Network allows Bitcoiners to send a single Satoshi with a click of a button. Since the protocol does the transactions made in your payment channel off-chain, you save big time compared to the usual Bitcoin transaction costs.
Analysts believe these micro-transactions will become even more important as further Bitcoin adoption takes place. In essence, the day approaches where owning or spending a single Bitcoin could be extremely rare. Satoshis will be the dominant form of Bitcoin used by the public.
Lightning Pushes On
Bitfinex is way ahead of the curve with its latest maneuver. For two years analysts have speculated on what type of price-gap Bitcoin Lighting will produce. Considering the added liquidity, the price gap could prove to be substantial. For now, Bitfinex will provide the market with answers to many of these long-lingering questions.