Bitfinex Opens Largest Channel On Bitcoin Lightning Network

As one of the few exchanges that pioneered integration with Lightning Network, Bitfinex has continued to expand on the features that enable users of the exchange to benefit from the scaling protocol.

According to a blog post on the exchange’s website released on September 22, the exchange’s Wumbo channel gives users greater options of instant deposits and withdrawals of bigger funds.

The release stated that the company has contributed to the technology while ensuring that its own channel of integration is scaled and safe for investors to gain more benefits of transacting bigger funds at faster rates with lower fees.

The Bitfinex routing nodes have the capacity of 100 BTC. The two nodes are accessible to the public and has enhanced the delivery of transactions by users. There is also an on-chain, off-chain option which could be used freely, enabling migration to and from the Bitcoin main chain without an extra cost to users of the Wumbo channel.

The blog post further explained:

[bctt tweet=”Bitfinex and Tether have invested in the development of RGB and OmniBolt to bring assets and other layer-3 technologies to the Lightning Network. Bitfinex has also developed Dazaar, an open-source library for the development of peer-to-peer (P2P) applications with the Lightning Network, based on Hypercore Protocol.”” username=”Cryptoinfowatc1″]

The exchange stated that its channel has processed thousands of transactions and has contributed to the capacity of the LN. It added that the limited placed on the network at its earlier stage by developers which made it transact lower volumes for trials has been eased. Users can now send substantial volumes via the network as exemplified by the Wumbo channel.

 “The Wumbo channels will give our users the ability to deposit and withdraw large amounts of Bitcoin quickly and cheaply, thus allowing them to take advantage of trading opportunities.

It added that this would also enable developers and retailers to sell using the LN, stating that the general public can conveniently open channels up to 2 BTC capacity on any of the Bitfinex Wumbo channel nodes. Its 3×5 Bitcoin channels recently opened to celebrate the Wumbo is the largest on the LN so far.



Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative reviews.

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