Thanks to the new feature, the company will be able to reduce fees for Bitcoin transactions.
“When users send or receive Bitcoin through the Lightning Network with their Paxful Wallet. Their Bitcoin balance is used the same way as if they would transfer it on the Bitcoin network,” the representatives of the platform noted.
Instant transaction processing will allow customers to use the Lightning network. This will allow for both P2P transfers and payment for goods and services.
Lightning Network is the industry’s greatest hope in terms of speed and affordability of transactions in the first cryptocurrency‘s network. The integration of this technology into our peer-to-peer platform will provide users with financial freedom. “Buying a coffee with Bitcoin will now be a realistic option,” commented Ray Youssef, CEO and co-founder of Paxful.
Currently, Lightning has around 26,500 nodes, with a network capacity of 2,468.93 BTC.
According to Coin Dance, the weekly trading volume on the Paxful platform exceeds $40 million.
Recall that in March 2020, Paxful integrated solutions from Chainalysis for monitoring suspicious transactions. The goal of the cooperation is to reduce the risk of violating legal norms when making transactions with the help of startup software.
The analytical startup noted that previously they labeled all cryptocurrency peer-to-peer exchanges as “inherently risky”. Since P2P exchanges are non-custodial, often they do not require users to create an account. However, the introduction of Paxful control tools “sets a new benchmark for compliance with regulatory rules for P2P platforms,” the statement emphasizes.
Previously, such centralized bitcoin exchanges as Binance, Bittrex and Bitfinex were integrated with Chainalysis to mark high-risk transactions. Tether, the issuer of the USDT stablecoin, also uses startup tools.