The integration will make the Know Your Transaction (KYT) rule compliant for companies that process Bitcoin payments through Lightning Nodes. This also means that virtual asset service providers (VASPs) such as exchanges will be able to process Bitcoin transactions in accordance with global standards.
Chainalysis uses KYT to fully track bitcoin transactions. Thus, a user whose bitcoin may have been involved in crimes can be added to the blacklist.
The Lightning Network is a payment protocol that enables fast bitcoin transactions.
“The Lightning Network solves many of the problems that prevent bitcoin from being used for micropayments and other types of transactions that contribute to increased access to financial services. By enabling our customers to consistently support Lightning transactions, we hope to increase the popularity of the network and help it scale, ”said Pratima Arora, Chief Product Officer, Chainalysis.