Chainalysis adds Lightning Network support


Blockchain data platform Chainalysis will start supporting the Lightning Network in February, the company announced Friday. 

The Lightning compatibility will be available for customers of Chainalysis' cryptocurrency compliance software, KYT (Know Your Transaction). KYT helps virtual asset service providers (VASPs) like exchanges detect risk patterns and illegal activity.

Now, these VASPs will be able to "compliantly allow deposits and withdrawals of Bitcoin from a Lightning node," Chainalysis said in a press release. KYT will be able to provide alerts for Lightning transactions and pre-screening for withdrawals, it added. 

"By enabling our customers to compliantly support Lightning transactions, we hope to grow the network's popularity and help it scale," Chainalysis chief product officer Pratima Arora said in a statement.

The Lightning Network is a decentralized, Layer-2 protocol for sending instant Bitcoin payments. Its capacity has been growing rapidly this year.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

5 Steps to a Successful Crypto AML Program

As cryptocurrencies become increasingly mainstream, regulators, the media and policymakers are paying more attention to the financial crime risks associated with them. But what are the biggest compliance challenges crypto firms face, and what does a best practice AML program look like? 
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC