Synonym Software has launched Blocktank, a new Lightning Service Provider (LSP) aimed at Lightning Network-based businesses interested in providing a better experience for their customers.
The suite of open-source tools and services offered by Blocktank promises to help wallets, applications, exchanges, and merchants better manage the demands of sending and receiving effective and reliable payments on Bitcoin’s second-layer scaling network.
Blocktank consists of many different parts, including an application programming interface (API), a widget, and so-called hubs, all of which are open source in ten GitHub repositories.
Blocktank’s API allows companies to integrate, automate, and monetize aspects of their Lightning nodes, including purchasing, configuring, and ingesting data on their channels. For example, bitcoin exchanges can use the tool to tap into as much liquidity as they need so their customers can withdraw BTC instantly, encouraging self-custody.
Blocktank widgets are aimed at users interested in acquiring additional Lightning Liquidity to buy channels quickly and effortlessly. After accessing the Blocktank website, the user only has to configure the desired reception capacity, spending credit, channel setup and duration. Then the user will be asked to pay with Bitcoin on chain or on Lightning, after which he can claim the channel with LNURL or by manually providing his node information.
Businesses can also take advantage of Blocktank widgets by embedding the customizable tool in any web-based platform.
Businesses can become a Blocktank hub by running the Blocktank server themselves and joining Synonym’s Blocktank subnetwork.
Hubs get special access to Synonym’s optimized and well-connected node infrastructure for automatic channel rebalancing via Tightrope, which allows trusted nodes to automatically detect when a channel falls below a balance threshold and requires rebalancing. Blocktank hubs can also purchase custom channels, automatically top up their channels, and gain access to a routing fee structure that decreases the more volume they route through Synonym’s infrastructure.
Synonym was launched last year with the goal of bringing new utilities and user experiences to Bitcoin and Lightning through open-source software.