BitMEX Research Just Setup a Lightning Network Node to Test Deposits & Withdrawals

BitMEX Research Just Setup A Lightning Network Node

Cryptocurrency exchange BitMEX just setup their first Lightning Network node. BitMEX confirmed the news in a tweet earlier today.

The public key for BitMEX’s LN node is this: 0287416bd553ff2630ff54640e3a7e4230d632387039313bf5a24d7df2006e13c2

You can view the node at here.

BitMEX is welcoming users to open a channel to their node. Deposits and withdrawals are not currently available, but BitMEX describes it as “a start”.

The public address listed above is the only BitMEX Lightning Network node in existence. Any other nodes with BitMEX in their name have no connection to BitMEX and are likely being operated by scammers.

Wider adoption of the Lightning Network is crucial as Blockstream’s scaling solution continues to move forward. It’s also good news for people who predicted that exchanges would become major Lightning Network: with companies like BitMEX establishing Lightning Network nodes, it’s possible other exchanges could follow.

Can You Make Profit From The Spread Between Lightning Network And Non-Lightning Network Bitcoins?

Lightning Network is a controversial scaling solution. It takes bitcoin transactions off-chain for the first time. Lightning Network operates as a side-channel. Transactions take place within the channel without being recorded on the blockchain. The opening of the channel is recorded on the blockchain, but smaller transactions within the vchannel stay within that channel.

This opens up unique new potential for bitcoin. As one Twitter user explained in a reply to BitMEX’s tweet, there’s potential for traders to capitalize on the spread between Lightning Network bitcoins and non-Lightning Network bitcoins.

“I'm just excited to trade the spread between on-chain bitcoins and off-chain LN tokens. Since [they] will have different levels of fungibility, there should be good volatility to play with in a highly liquid futures market like BitMex,” explains Kurt Wuckert Jr on Twitter.

“LN tokens can only be sent to LN wallets. Bitcoins can only be sent to Bitcoin wallets. The blockchain has different scarcity & limitations than LN too. Plus LN aims to be almost free, but with finite resources, there will be a fee market there, and plenty of trader opportunity,” he added.

Because of this spread, the Lightning Network will open a unique opportunity on which exchanges like BitMEX can capitalize.

“Anyone with advanced trading experience is chomping at the bit which is why BitMex is getting in on this early. In fact, there are already high level financial instruments being developed to figure out how to make profits from the spread between bitcoin, LN and Watchtowers.”

In layman’s terms, a Lightning Network bitcoin might have greater utility than a non-LN bitcoin. It’s easier and cheaper to transfer, which means it should theoretically be priced higher than a non-Lightning Network bitcoin.

Ultimately, BitMEX is one of the first major exchanges to launch a Lightning Network node. This is great news for BTC fans as their proposed scaling solution continues to roll out.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today