Hey Jessatoshis
If you've followed my posts in the past, you know I am pretty excited about the possibilities the lightning network brings. The tech may be a little completed and clunky but so is everything in crypto, and without our support, we don't get the user testing data and feedback needed to improve these products.
In the Bitcoin and crypto community, we're always advocating ownership of your own coins, and I know that's not always the case with a coin like BTC and ETH that have massive fees attached to their transfers. Some people want to get in the short term and get out.
But there is and always will be a considerable risk when holding your coins on an exchange or 3rd party fintech service. I've been exploring the lightning network using a custodial wallet called Wallet of Satoshi. While its super simple to use and get started with since they've got open payment channels and liquidity to assist your transfers, it's far from ideal for long term storage of sites.
The importance of lightning sats
As Bitcoin moves up in price, so too will its fees, we have to accept that, and because of it moving, it will become increasingly expensive. If you're also moving small amounts of Bitcoin, you're creating a UTXO every time, which increases the cost of your Bitcoin transfers in the future.
If we are going to use Bitcoin as a medium of exchange and not just a long term store of value, we will need to begin adding more liquidity to the lightning network. This is why I am so bullish on the project long term, and I've already been active in spinning up lightning wallets and pumping them with sats.
Lightning wallets
There are several lightning wallets already available, but I've been focused on the one released by Lightning Labs, the guys behind the lightning network. They currently have a desktop version while the mobile version is also available on mainnet.
Downloading the wallet for desktop, you'll need to head over to their github and download the file for your operating system, be it Linux, Windows or Mac OS.
- Once installed, you will go through the basics of setting up a wallet, which is getting your seed phrase.
- Save your seed phrase
- You will then be asked to input 3 of your seed phrase words to continue
- Then, you'll need to set up a password for login
Once you've completed these steps, you'll be greeted by this purple screen.
Wallet shortcomings
As with anything non-custodial, its a pain in the arse to use; you won't be able to receive payments or send LN payments from the get-go, so don't try sending lightning sats to your wallet.
It will fail; while you won't lose your sats, it's just annoying, and the UX needs some work to tell you that.
You will first need to click the icon in the top right corner and get the main chain Bitcoin address attached to this wallet and send it some Bitcoin to load up some funds.
Once your funds are ready, you should be able to transact as long as autopilot is enabled to set up channels for you automatically; however, this process is not full proof and can be frustrating.
wallet funded with sats
Finding your way into lightning
Lightning wallets still need to tap into functions like lightning loops and lightning pools if these are to become practical everyday tools, but it sure is a step in the right direction.
All the best with your lightning journey, and If you do get it set up, you can always ping me 1 sat as a thank you :)
Source: The Bitcoin Manual
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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Posted Using LeoFinance Beta
Have you ever tried Casa node? Been running one for a while but honestly thinking about just removing it not sure if anyone really uses the networks plus the risk of losing it can be pretty high.
No I haven’t they were sold out pretty fast, very few people are using lightning and there’s very little Bitcoin locked in the network so exchanges can’t leverage it yet even though there are quite a few that support it.
I am hoping with loops and pools that fixes the situation of liquidity
Posted Using LeoFinance Beta
Which crypto provide that wallet?
Posted Using LeoFinance Beta
This is for Bitcoin only and it’s produced by lightning labs the guys that launched the lightning network
Posted Using LeoFinance Beta
Can you suggest me any platfrom where provide only Bitcoin? Or have to buy?
Crypto.com has no fees on buying but you need to KYC! You can use apps like moonpay to buy without KYC
TY for this article. I'll recommend it to one of my lady friends also.
I'llalsolook more into the lightning wallets for several things that I need to.
I appreciate it! TY again.
It's a pleasure I am no expert on lightning but I'm learning and messing around with it every day since it's cheap to use like HIVE
Thanks a lot for the details
Do you know the cost involved if someone want to transfer Sats to bitcoin network? And is there any restriction on minimum number of Sats if someone want to transfer those to main bitcoin chain?
Breeze is another one to try.
Posted Using LeoFinance Beta
There is no restriction on the amount of sats you want to fund your LN wallet with but you have to fund it with Bitcoin from the main-chain first so factor in the mining fees before you load up you wallet. Once you have a wallet you can then set up payment channels and you can send as little as 1 satoshi or receive as little as 1 satoshi with no fees/low fees (sub satsohi level)
I haven't used Breez yet, the reason I used Lightning Is because I can connect it to Joule, which is a future post I am working on
The LN certainly holds a good looking future to use Bitcoin as a currency at the sats level. Just wondering about how the narrative changes from folks like Saylor et Al who are talking about it being a store of value/asset but there are 2nd layer solutions looking to make it a currency...
Sending as little as 1 sat with no fees is pretty awesome though once you can figure set up!
from what I can tell lightning isn't/won't be Bitcoin exclusive and it's also going to incorporate litecoin. Ethereum has its own version raiden which should be able to speak to lightning so this is where it really gets interesting.
I think it makes Bitcoin far more efficient especially for DE-FI, if they can crack lightning pools, then I see no reason why site like HODL HODL can't do lightning multi-sig loans the way it does main-chain loans.
The pieces are all fragmented right now, but I see it all coming together and its going to be awesome. Hence my reason for staking sats and learning about lightning
Oh wow that sounds pretty cool if it integrates ETH and other chains too - wei transactions without the fees could also be game changing!
You're right about the De-Fi side of it, think that would make sites like HODL HODL a great place for those with knowledge on DeFi to play around with!
It won't be bad going for Ethereum ,ETH is also growing rapidly.
thank you for sharing your wallet, have a nice day