On December 10, the blockchain intelligence agency Chainalysis revealed that the corporate has added assist for Bitcoin’s second-layer protocol the Lightning Network (LN). According to Chainalysis, companies like exchanges and digital asset service suppliers (VASPs) can leverage the corporate’s Know-Your-Transaction (KYT) real-time transaction monitoring software program in order to entry compliant bitcoin deposits and withdrawals from a LN node.
Compliant Lightning Transactions
The blockchain surveillance and intelligence firm, Chainalysis, introduced on Friday that the corporate has added Lightning Network (LN) assist to its record of blockchain and crypto-asset networks, the corporate presently displays. For years, Chainalysis has monitored the Bitcoin (BTC) blockchain, and today the agency shouldn’t be solely monitoring BTC, but in addition a myriad of crypto networks and decentralized finance (defi) protocols.
Essentially, the LN is an offchain routed “layer 2” (L2) cost channel community that helps facilitate bitcoin (BTC) transfers quicker and cheaper than onchain transactions. The Chainalysis LN assist will present VASPs with “Chainalysis KYT (Know-Your-Transaction) for real-time transaction monitoring will now be able to compliantly allow deposits and withdrawals of Bitcoin from a Lightning node.”
As of December 1, 2021, Chainalysis estimates there’s “just under 3,600 BTC worth over $205 million is locked in public Lightning Network channels.” This has elevated an incredible deal for the reason that complete worth locked in the LN was round 468 BTC on January 1, 2021. Chainalysis additionally mentions that the LN L2 system is leveraged by international locations comparable to El Salvador and huge companies like Twitter. Pratima Arora, the chief product officer at Chainalysis explains that the agency hopes compliant LN transfers will assist the LN mature.
“Chainalysis exists to build trust in cryptocurrency in order to promote more financial freedom with less risk,” Arora mentioned in an announcement. “The Lightning Network solves many of the challenges that prevent the Bitcoin protocol from being used for micropayments and other transaction types that bolster financial inclusion. By enabling our customers to compliantly support Lightning transactions, we hope to grow the network’s popularity and help it scale.”
Lightning Network Support for Chainalysis KYT Customers to Launch in February
Chainalysis has expanded its sources an incredible deal and faces dozens of blockchain intelligence and monitoring opponents. The firm raised $100 million on the finish of June in its Series E funding spherical and the previous C and D rounds additionally noticed $100 million capital injections. The firm’s put up valuation, after the Series E, was $4.2 billion in accordance to the agency’s announcement on the time.
Speaking in regards to the LN assist, Chainalysis claims that for the primary time, “VASPs can now offer support for Lightning transactions aligned with global regulatory best practices.” The product Chainalysis gives known as Chainalysis KYT helps “pre-screening for Lightning withdrawals and behavioral alerts.” The blockchain surveillance and intelligence firm additional says that the LN assist will likely be out there for Chainalysis KYT clients in February.
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