Bitfinex Teams Up with Synonym to Introduce Bitcoin Lightning Network Feature

Prominent crypto exchange Bitfinex has announced a collaboration with Synonym to introduce a new feature that enables customers to purchase Lightning Network connections for instant deposits, withdrawals, and payments.

The Lightning Channel feature is offered through Blocktank, a platform operated by Synonym, a subsidiary of Tether Holdings Limited.

Bitfinex Teams Up With Synonym

According to a press release shared with CryptoPotato, Bitfinex customers utilizing Lightning nodes will be able to connect with the Blocktank node within the Bitfinex platform.

Previously, customers had to go through a complex process involving withdrawing their Bitfinex balance to their node, navigating intricate metrics, selecting a peer, and manually opening a channel. Another option was to search for external Lightning Service Providers or listings on liquidity marketplaces and purchase channels from them using their wallet.

The latest move would, however, eliminate these hassles and instead enable users to access substantial receiving capacity.

With over 12,000 transactions processed and an average monthly liquidity of nearly 680 BTC, Bitfinex said it operates some of the most significant Lightning nodes. It is important to note that Bitfinex was one of the first exchanges to have integrated the Bitcoin Layer 2 scaling solution, Lightning Network, in 2019. A few months later, the crypto exchange introduced the support of LN deposits to its mobile app.

Commenting on the latest development, Paolo Ardoino, Chief Technology Officer of Bitfinex, said,

“By giving customers access to a quick and easy payment, deposit, and withdrawal process, we’ve not only amplified the capabilities of the Lightning Network but also enhanced accessibility and convenience within the Bitfinex ecosystem. By collaborating with Synonym, we are pioneering a new era of lightning-based transactions, reinforcing Bitfinex’s role as a trailblazer in the digital asset trading landscape.”

Bitfinex Fends Off Attack

The collaboration with Synonym comes a day after Bitfinex successfully thwarted an attack.

According to Ardoino, “someone attempted to attack” Bitfinex through a “Partial Payments Exploit,” with the attacker assuming that the exchange had mistakenly configured its software to handle partial payments.

If the attack had been successful, it could have had severe consequences for Ripple and XRP. However, Bitfinex reassured that they had correctly set up their systems to interpret the delivered amount field.