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Bitfinex adopts Lightning Network’s ‘Wumbo Channels’ 

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Cryptocurrency exchange Bitfinex integrated Lightning Network’s Wumbo Channels, which helps speed up payment transaction time, on its platform, which will now allow the exchange to provide users with instant Bitcoin deposit and withdrawal capabilities, Bitfinex announced today. 

These larger, Wumbo, payment channels would enable Bitfinex users to save on transaction time and fee and benefit serious traders who usually deposit and withdraw large amounts of Bitcoin. In addition to this, Wumbo Channels would provide Bitfinex the infrastructure required to allow retailers and service providers to build applications and sell high-value goods and services over the Lightning Network. Especially without sacrificing time in opening and closing multiple channels, the release stated. 

This would also help users to open channels up to 2 Bitcoin capacity, however, retailers and wallet providers like Bitrefill, LnMarkets, and Lightning Labs, would be able to open channels with up to 5 Bitcoin capacity. This, the exchange believed, would address the goal of scaling Bitcoin. 

With regard to the reason why Bitfinex decided to integrate Wumbo channels now, the exchange cited that Lightning Network had become more mature and that developers had removed the hard cap on channel capacity, which had earlier thwarted the capability for unlimited channel sizes and payment amounts. 

Additionally, Bitfinex has announced the launch of its 3×5 Bitcoin channels, which are said to be the biggest channels in the network, so far.

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Alisha is a full-time journalist at AMBCrypto. Her interests lie in blockchain technology, crypto-crimes, and market developments in Africa and the United States

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