​Lightning Network will implement a transaction analysis system from Chainalysis and TRM Labs

What’s new? The team of the Lightning Network payment protocol has begun working with analytics firms Chainalysis and TRM Labs. The collaboration will allow regulated firms to operate in full compliance with regulatory requirements when using the protocol, said Lightspark CEO David Marcus.

Some additional @Lightspark updates:1/ Excited to onboard @Rain, one of the leading MENA exchanges on our platform and extend Lightning to millions of consumers in the region;2/ Extending Lightning to merchants via @FlexaHQ;3/ Enabling regulated entities to get on Lightning… — David Marcus (@davidmarcus) May 18, 2023

The Lightning Network, a Layer 2 (L2) payment protocol, is used to speed up transactions on the Bitcoin network and address scalability issues. It was implemented into the mainnet in 2018.

Lightspark was founded in May 2022 by former Meta crypto chief David Marcus. The company is focused on developing the Lightning Network. The startup has been backed by investors such as Andreessen Horowitz (a16z), Paradigm, Coatue, and Matrix Partners.

What else is known? In addition to partnerships with Chainalysis and TRM Labs, Marcus announced a collaboration with cryptocurrency exchange Rain, which will expand the use of Lightning Network in countries in the MENA (Middle East and North Africa) region.

In order to expand the capabilities of the protocol, Lightspark presented Wallet SDK, a tool to create wallets that support Lightning Network. And the collaboration with Flexa will focus on implementing fast and reliable bitcoin payments for merchants around the world.

Introducing the @lightspark Wallet SDK - the ultimate tool for powering Lightning wallets. Now businesses and platforms can effortlessly offer their customers a world-class interoperable Lightning wallet to execute payments swiftly and securely. More at https://t.co/BN4lbOtQvM pic.twitter.com/UETkte8ZDR — Lightspark (@lightspark) May 18, 2023

In May, analytics software company MicroStrategy launched a Lightning Network-based platform for rewards programs with rewards in satoshi (1 SATS = 0,00000001 BTC). MicroStrategy previously integrated the Lightning Network into the corporate email, which can now be used to send bitcoins. The company has been developing enterprise applications based on Lightning Network since last year, including a wallet, servers, and authentication mechanisms.

On May 8, Binance twice suspended bitcoin withdrawals due to high network load. The crypto exchange allowed the possibility of withdrawals via Lightning Network as an option to solve similar problems in the future.