Tuesday, August 16, 2022

Blockchain data platform Chainalysis will add support for the Lightning Network.

The Takeaway:

Blockchain data platform Chainalysis will add support for the Lightning Network, a layer two protocol on the Bitcoin blockchain, in February 2022.

Blockchain data platform Chainalysis announced that it will add support for the Lightning Network, a layer two protocol on the Bitcoin blockchain, in February 2022. The integration will make the Chainalysis Know Your Transaction compliance software available to companies that process Bitcoin payments through Lightning nodes. It also means that virtual asset service providers (VASPs), like exchanges, will be able to handle Bitcoin transactions in a way that’s compliant with global standards. 

 

“There will be no change in the user experience of the Lightning Network.”

“There will be no change in the user experience of the Lightning Network,” a Chainalysis spokesperson said. The VASP terminology, which Chainlysis used in its press release, comes directly from Financial Action Task Force (FATF) guidance that was updated at the end of October. The international body maintains best practices for anti-money laundering. However, it doesn’t have the power to issue fines. It does maintain a gray list for countries that it feels warrant increased monitoring, and a black list, for ones that have been uncooperative.    

 

Lightning Network adoption continues to rise.

Adoption of the Lightning Network, which launched in 2018, has risen at a faster pace in 2021 than any other year. According to Bitcoin Visuals, the number of nodes on the network grew by 68% last year. But this year, helped by the fact that it was part of the Salvadoran government’s rollout of Bitcoin as legal tender and Twitter’s integration of Bitcoin for its tipping feature, the number of active nodes has grown by 128% since January. Cryptocurrencies adoption, in general, has grown significantly over the last year. 

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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