Founded in 2012, Bitfinex is a globally acclaimed peer-to-peer cryptocurrency trading exchange that caters the requirements of its customers hailing from different parts of the world. The Hong Kong-based crypto trading platform offers an array of unprecedented digital asset trading services through its P2P funding market. Owned and managed by iFinex Inc., Bitfinex presently serves a massive client community spread across 52 countries.
The dedicated team of professionals of the Bitfinex crypto exchange has always been in a constant attempt to enhance the user-experience by infusing the best technological advancements into the ecosystem. In a major attempt to improve the network capacities of its core system, Bitfinex has announced the adoption of the revolutionary Lightning Network in its platform. By launching support for the Lightning Network, Bitfinex will allow the investors to connect to the Lightning Network node in a convenient manner and start payment operations with the exchange.
“As industry pioneers, we strive to remain at the forefront of Bitcoin technology development. We’re proud to support the Lightning Network,” stated Paolo Ardoino, CTO of Bitfinex.
The Lighting Network is a Layer 2 payment protocol that has been designed to make bitcoin payments faster, economical, secured, and more privacy-driven. It serves as a set of rules that operate on top of a blockchain-supported cryptocurrency which allows quick transactions amongst the participating nodes. These participating nodes indulge in transactions with each other without displaying everything on the blockchain network. The blockchain is put to use only for the final settlement of funds which is done when the payments channels are closed.
Ardoino further added that “By supporting a Lightning Network node on our platform, our users can look forward to more cost-effective and efficient Bitcoin transactions.”
Bitfinex has always been a pioneer in the cryptocurrency arena by offering products and services to the customers who are innovative and the best in the industry. The integration of the Lightning Network into Bitfinex is likely to open doors of success for the crypto exchange and might become Bitcoin’s P2P payment layer in the near future. The exchange has become the first major crypto exchange to enable deposits and withdrawals via the Lightning Network.
“As one of the most advanced cryptocurrency exchange, we’re committed to growing the Lightning Network on our platform to boost Bitcoin’s competitiveness as a means of payment, bringing Bitcoin ever closer to achieving mass adoption,” affirmed the leader.
Why Bitfinex chose Lightning Network?
The various benefits offered by the Lightning Network which made it the first choice for Bitfinex exchange are:
- It helps in eliminating the scalability issues related to Bitcoin by supporting millions of transactions every second without the requirement of custodians.
- It helps in carrying out micropayments for a lower cost as the fee is calculated in proportion to the payment amount.
- The overall fee charges are quite low as settlements are executed off-chain.
- As the system does not need to wait for network confirmations, the payments are settled in a few seconds span.