Bitstamp exchange launches own Lightning node
The move is expected to help boost the exchange’s capabilities
The Bitstamp cryptocurrency exchange needs more power. The company asserts that its current operating levels are maximizing its capabilities and is planning to introduce a new component that it expects to greatly enhance its performance. The company has announced that it will install its own Lightning Network (LN) node in order to boost its capacity.
A recent tweet by the company asserts, “We believe the Lightning Network has the potential to unlock a whole new level of utility for Bitcoin. We’ve set up our own #LN node to help grow the network and encourage other companies to get on board.”
Bitstamp, the 39th largest crypto exchange by trading volume, expects the LN to allow it to provide “fast, seamless and zero-fee” transactions by allowing payment links directly between platform users. This will be possible due to LN’s architecture, which takes portions of transactions off the blockchain for processing before sending only the relevant data back to the network.
By increasing the number of nodes it operates, Bitstamp asserts that it will be able to keep its network operational. It adds that, since more nodes create more payment channels, the total amount of network liquidity can increase, as well. This will allow it to manage more transactions and help drive more Bitcoin adoption.
LN nodes are already seen at several crypto entities, including Coinbase and Bitrefill. Bitfinex has said that it will install an LN, as well, to support the Tether stablecoin.