Blockchain data platform Chainalysis announced in February 2022 that it will begin supporting the Lightning Network, the Layer-2 protocol on the Bitcoin blockchain.

Pratima Arora, Chainalysis chief product officer, said:

   “Lightning Network solves many challenges to the Bitcoin blockchain.”

This integration will make Chainalysis KYT compliance software available to companies that process BTC payments via Lightning nodes. This will also contribute to virtual asset service providers such as exchanges to conduct BTC transactions in line with global standards.

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The compliance software “The Know Your Transaction” will enable financial institutions processing BTC payments to adapt to global anti-money laundering practices.

Chainalysis spokesperson said:

   “There will be no changes to the user experience of the Lightning Network.”

The definition of “VASP” used in the Chainalysis press release is directly based on the Financial Action Task Force guidance, which was updated at the end of October. The said international organization carries out various practices in the fight against money laundering.

Chainalysis chief product officer Pratima Arora used these statements in her post on the subject;

   “Lightning Network resolves many of the challenges that prevent the Bitcoin protocol from being used for micropayments and other types of transactions that support financial inclusion. By enabling customers to harmoniously support Lightning transactions, we hope to help the network grow in popularity and scale.”

The Lightning Network integration, which was started in 2018 in Bitcoin, gained even more speed in 2021, especially in 2021. According to BTC Visuals, the number of nodes on the network increased by 68% in 2020. But apart from being part of the El Salvador government launching BTC as the official currency this year; With the help of Twitter's BTC integration, the number of active nodes on the network has increased by 128% since January.