Chainalysis adds Lightning Network support

Technology • December 10, 2021, 5:19PM EST
Shutterstock

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.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

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.

About Author

Kristin Majcher is a senior correspondent at The Block, based in Colombia. She covers the Latin America market. Before joining, she worked as a freelancer with bylines in Fortune, Condé Nast Traveler and MIT Technology Review among other publications.