January 18th Bitfinex expands Lightning capabilities by integrating Blocktank
announcement
At Bitfinex and Synonym, we believe we can build a better future around Bitcoin for everyone. We do this by creating products and services that put the power back in your hands while staying true to the Bitcoin ethos of being private, open source, and most importantly, self-custodial.
That’s why we’ve been building on Lightning from the ground up. Our team has been running Lightning nodes in production since early 2018 and helped Bitfinex integrate the Lightning Network in late 2019.
We’ve come a long way since then, but our mission hasn’t changed. The first product released by Synonym is Blocktank, a full-service Lightning Service Provider (LSP). Blocktank lets you set up right away in Lightning, providing powerful, liquid channels, high payment success rates, and instant spending balances in a seamless, user-friendly way without the need to manage your funds. After all, it’s nacho key, nacho cheese!
Blocktank offers both an easy-to-implement API and elegant, user-friendly web widgets designed to make liquidity accessible to everyone.
A natural evolution for exchange
We are once again joining forces with Bitfinex to take things to the next level. We are introducing a new feature that will allow Bitfinex users to instantly configure and purchase Lightning connections (channels), all powered by Blocktank. This is the next evolution of exchange and LN integration, with exchanges moving past being simple entry and exit points into Lightning to where they are now the primary liquidity providers for the network.
Getting this done before announcing this partnership would require navigating a complex minefield. First, you need to move funds from your Bitfinex account to your own node. You will then need to explore, identify and compare products from various liquidity marketplaces or find a reputable lightning service provider.
We’ve abstracted and simplified the process so you can purchase liquidity with the click of a few simple buttons without ever having to leave your Bitfinex account.
Why do I need a Lightning connection?
After reading all this, you may still be thinking: Why Buy Lightning Connection on Bitfinex?
Lightning allows you to make instant payments (deposits and withdrawals) on exchanges. By now you know that everything in Bitcoin is a trade-off, and Lightning is no exception. Unless you’re running your node on a desktop device (Umbrel, Raspberry Pi, or MyNode) or through a mobile wallet like Bitkit, you’re basically using IOUs. This means that instead of using Lightning, you entrust your funds to someone else (a third-party custodian) who uses Lightning on your behalf.
However, if you are an individual running a Lightning node or looking to do so, you will greatly benefit from connecting to Lightning using Blocktank.
seclusion
- Blocktank creates private channels so you can monitor them.
high connectivity
- Our nodes are well maintained and connected to all important endpoints and hubs across the network, ensuring high payment success rates.
Convenience
- Pay with your Bitfinex balance to save on-chain fees.
Let’s test it
Let us show you how easy it is to set up your own channel.
1. In your Bitfinex account, go to the Wallet and Lightning tab. You will see the option to purchase Lightning Channels.
2. You can now select the amount of Bitcoin you want to use as part of your Lightning balance. You can choose one of the options or enter a custom amount.
3. Selecting the receiving capacity allows you to set the amount of liquidity you can receive through Lightning.
4. Once you have selected both your spending balance and your receiving capacity, you will be given the option to a) pay with Bitfinex or b) pay with another wallet of your choice. You also have the option to pay your invoices using Lightning or Onchain Bitcoin.
5. Once your payment is successfully received, you can continue to apply for Lightning Channel. There are two options: One is to open a channel by copying and pasting the URL into a Lightning node. Another option is to do it manually. In this case you will need the node URI. Start the channel by pasting the node ID, IP, and port information.
Want to try it yourself? Go to your Bitfinex account and follow the steps outlined above!