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Lightning Labs, the blockchain development company behind the Bitcoin Lightning Network, has announced the launch of a marketplace. The marketplace enables Lightning users to buy and sell access to channel liquidity. The Lightning Network was designed to provide a scaling solution for Bitcoin, by adding another layer to the Bitcoin blockchain, enabling faster and cheaper payments.

According to a press release, the marketplace, called Lightning Pool, is a non-custodial, peer-to-peer marketplace for Lightning node operators to buy and sell channels”, making it easier to instantly accept Lightning payments, and will open up a new possibility of earning a yield on bitcoin by selling access to liquidity on Lightning.

The new marketplace was developed to address the general lack of liquidity on the Lightning Network. Lightning Pool will provide users managing multiple channels with the ability to buy liquidity from the marketplace when they need it. Lightning Pool ensures that Lightning Network node operators will be consistently compensated for their cost of capital, by offering it up as liquidity.

To begin with, Lightning Pool channels will have a fixed two-week duration. As Lightning  Pool grows, however, Lightning Labs plans to add additional markets with other durations. At the moment, account sizes are also limited to 10 BTC, but this will likely increase as more confidence is gained in the system.

Feature image by schneider-lein from flickr

Andrew is a law student currently studying at UNISA, and Global Crypto's in-house reporter. Andrew discovered blockchain in his final year of school and since developed a keen interest in the subject. He appreciates a good cup of coffee. When he is not too busy with work or studies, he enjoys playing a good round of golf.