LN Markets Bitcoin Derivatives Platform is Coming

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  • LN Markets is a Lightning Network-powered decentralized exchange that allows wallet-wallet trading of Bitcoin
  • The platform has just completed a second round of fundraising after a successful test period which began last year
  • Standard Bitcoin transactions are too slow for regular trading purposes

The Bitcoin Lightning Network is known for its innovation, and a trading platform launched last year has recently been proving what can be done with the technology. LN Markets, a Lightning Network-powered Bitcoin derivatives platform, may still be in its alpha testing phase but it has just secured funding for further development of its platform after enjoying huge success since its test phases launched last year.

Bitcoin Lightning Network Trading Made Possible

LN Markets acts like most other decentralized exchanges in that it allows users to connect to the platform using their wallets rather than having to send money to the exchange and trade that way. Standard Bitcoin transactions would be too slow to use for wallet-based trading purposes, but the Lightning Network’s instant payment mechanism is the perfect technology to use for decentralized trading using Bitcoin.

LN Markets launched the Beta test of their derivatives platform in December last year and the Alpha in March this year, just a day before Bitcoin’s epic crash to $3,580. The initial launch has proved incredibly popular, with $10 million in trading volume conducted across more than 22,000 trades, a great achievement for a test product built on technology that has not yet enjoyed mainstream success.

LN Markets Looking Towards Full Launch

The success of the Alpha and Beta tests gave the LN Markets team confidence to seek further funding, a process which they began in July this year. This funding round closed successfully last week, with the likes of Bitfinex and Arcane Crypto investing.

With the core of the platform clearly working well, the funding will likely go toward building it out to a point where a full launch can take place.