January 18 Bitfinex is integrating Blocktank to expand Lightning features
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At Bitfinex and Synonym, we believe in building a better future around Bitcoin for everyone. We do this by creating products and services that give you the power back in your hands while staying true to the spirit of Bitcoin – private, open source, and most importantly, self-protective.
That's why we've been building on Lightning from the beginning. Our teams have been running Lightning nodes in production since early 2018 and were instrumental in helping Bitfinex integrate the Lightning Network in late 2019.
We've come a long way since then, but the mission hasn't changed. The first product launched is Blocktank, a full-service Lightning Service Provider (LSP). With Blocktank, you get instant access to Lightning through robust and liquid channels, a high payment success rate, and instant spending balances wrapped in a seamless, user-friendly way without having to provide custody of your funds – after all, nacho keys, nacho cheese!
Blocktank comes in an easy-to-implement API and a sleek, easy-to-use web tool that we built for everyone to have access to liquidity.
The natural development of exchanges
We're taking things to the next level by joining forces with Bitfinex once again. Together we present a new feature that allows Bitfinex users to instantly configure and purchase a Lightning connection (channel), all powered by Blocktank. This is the next evolution of exchange and LN integration as exchanges move beyond the point of being mere ramps in and out of Lightning to now become the primary liquidity provider for the network.
Before we announce this partnership, you'll have to maneuver a complex minefield to make this work – first you'll have to move your funds from your Bitfinex account to your node. Then you will have to navigate, select and compare offers on different liquidity markets or find reputable Lightning service providers.
We've condensed and simplified the process, so you don't have to leave your Bitfinex account and can buy liquidity with a few simple clicks of a button.
Why do you need a lightning connection?
After reading all this you might still be thinking – why would I need to buy a Lightning connection on Bitfinex?
Lightning allows instant payments (deposit and withdrawal) from the exchange. By now we hope you know that everything comes with swaps in Bitcoin and Lightning is no exception to that. Unless you're running a node either via a desktop device (Umbrel, Raspberry Pi, or MyNode) or a mobile wallet like Bitkit, you're essentially using an IOU. What this means is that instead of using Lightning, you trust someone else with your money (a third-party trustee) who uses Lightning on your behalf.
However, if you are an individual running a Lightning Node or intend to do so, using Blocktank to connect to Lightning can benefit you greatly:
Privacy
- Blocktank will open a private channel, so you can monitor it
High connectivity
- Our node is well maintained and connected to all important endpoints and hubs across the network, ensuring a high payment success rate.
comfort
- Pay with your Bitfinex balance to save on-chain fees
Let's test that
Let's show you how easy it is to set up your own channel:
1. In your Bitfinex account, go to Wallet and the Lightning tab. You will see the option to purchase a Lightning Channel.
2. You can now select the amount of Bitcoin you wish to spend as part of your Lightning Balance. You can choose an option or enter a custom amount.
3. Choosing your receiving capacity allows you to decide how much liquidity you can receive via Lightning.
4. Once you have selected both your spending balance and receiving capacity, you are given the option to either a) pay using Bitfinex or b) using another wallet of your choice. You also get the option to pay the bill using Lightning or Onchain Bitcoin.
5. Once payment is successfully received, you can continue to claim your Lightning Channel. You have two options – one is to copy the URL and paste it into your Lightning Node to open the channel. The other option is to do it manually – in this case you will need your Node URI – paste the node ID, IP and port information to start the channel.
Want to try it yourself? Go to your Bitfinex account and follow the steps above!
