“Chainalysis, a blockchain intelligence firm has announced that a lightning monitoring service will be kick started for Virtual Asset Service Providers (VASPs) and Crypto exchanges. The Know Your Transaction (KYT) toolkit in the service will help in real time monitoring of the transactions on the Layer 2 Lightning Network of Bitcoin that is a faster and cost effective means of transacting Bitcoin.
Chainalysis, a blockchain intelligence firm has announced that a lightning network monitoring service will be kick started for Virtual Asset Service Providers (VASPs) and Crypto exchanges in February 2022. The company regularly monitors Bitcoin and a myriad of cryptocurrency networks and De-Fi platforms and now the company has decided to provide the services for the new L2 Lightening Network of Bitcoin.
The CEO of Chainalysis on Friday claimed that “Chainalysis exists to build trust in cryptocurrency in order to promote more financial freedom with less risk. The Lightning Network solves many of the challenges that prevent the Bitcoin protocol from being used for micropayments and other transaction types that bolster financial inclusion. By enabling our customers to compliantly support Lightning transactions, we hope to grow the network’s popularity and help it scale”.
Chainalysis claims that this type of service is the first of its kind which will provide VASPs with Chainalysis KYT toolkit for pre screening of the transactions on the lightning network and to provide them with various behavioral alerts. This will help in strengthening the lightning network of Bitcoin and in ensuring the transactions are made in a proper manner without any malicious behavior.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investment.
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