For years, the Bitcoin community has lived with a persistent dichotomy. On one hand, we have witnessed historic milestones—a sovereign nation, El Salvador, adopting Bitcoin as legal tender, and institutional giants like BlackRock signaling their approval. On the other hand, the vision of a "hyper-bitcoinized" world where you can walk into any coffee shop globally and pay for a latte with satoshis remains elusive.
Critics often point to this gap as evidence of failure. They argue that the Lightning Network—Bitcoin's layer-2 solution for instant payments—has been around long enough to have taken over, yet it hasn't. The narrative suggests that if it were going to happen, it would have happened by now.
However, this perspective misses the forest for the trees. Lightning hasn't failed; it has been waiting for its foundation to cure. Money does not evolve in a chaotic vacuum; it follows a strict evolutionary path. We are not witnessing a stagnation of the network, but rather the precise moment where we cross the bridge from
"Store of Value" to "Medium of Exchange."
The Evolution of Money: A Staged Approach
To understand why Lightning is only now ready for prime time, we must understand the lifecycle of money. A new form of money cannot simply spawn into existence with all the properties of a mature currency. It must go through distinct stages of development, and you cannot build the second floor of this house before the foundation is set.
Stage A: Store of Value (SoV)
This is the "Digital Gold" phase, and it is the prerequisite for everything else. Before an asset can be used to buy bread, it must be trusted to hold value over time. We can confidently argue that Bitcoin has largely secured this stage. The adoption by nation-states like El Salvador and Bhutan, the entry of institutional heavyweights like Fidelity and BlackRock, and the accumulation by public companies like MicroStrategy and Tesla have cemented Bitcoin's status. This stage was critical because, without the massive liquidity and trust established here, the network would remain too volatile to serve as a reliable payment rail for the world.
Stage B: Medium of Exchange (MoE)
This is the stage we are entering now. Once the asset is trusted (SoV), it can begin to circulate. This is where the Lightning Network enters the picture. It acts as the technological enabler that unlocks speed and lowers costs, making the asset viable for commerce. But crucially, Lightning requires the deep liquidity established in Stage A to function properly. It could not have succeeded before now because the underlying asset was still proving its permanence.
Stage C: Unit of Account (UoA)
This is the final frontier—a long-term vision where goods and services are priced natively in sats rather than fiat currency. This reality will only become possible once Stage B becomes the global norm.
Why the "Lull" Was Actually Preparation
The perception that the last few years were stagnant for Lightning is a misunderstanding of engineering cycles. While the media and the market were fixated on the price action of Layer 1, a massive construction phase was occurring quietly in the background. Three critical pillars were being built to support the transition to a Medium of Exchange.
LN Ecosystem as of 2023
1. The Foundation is Solid
Bitcoin’s base layer (Layer 1) had to survive its own existential threats before Layer 2 could flourish. Having weathered the "blocksize wars" and intense regulatory scrutiny, Bitcoin is now universally recognized as a robust settlement layer. The base is finally strong enough to support the "skyscraper" that is the Lightning Network.
2. The Tech Stack Has Matured
If you compare the Lightning Network of 2018 to the network of today, they are practically different technologies. Early Lightning was a playground for developers willing to work with command-line interfaces. Today, the protocol boasts massive improvements in reliability. Innovations like "splicing" (managing channel funds without closing them) and "blinded paths" (improving privacy) have solved critical user experience hurdles. The ecosystem now includes intuitive mobile wallets, automated Liquidity Service Providers (LSPs), and robust tools that make merchant onboarding seamless.
3. Human Capital is Ready
Technology is built by people, and the talent pool in the Bitcoin space has deepened significantly. We now have a critical mass of developers, engineers, and educators who specialize specifically in Lightning. There has been a noticeable "brain drain" from legacy finance and broader tech sectors into Bitcoin layers, equipping the industry with the professional capacity necessary to handle global scale.
The Signs of the Shift: Invisible Adoption
The most exciting aspect of the current phase is that mass adoption won’t necessarily look like millions of individuals downloading a new, complex app overnight. Instead, it looks like infrastructure integration. We are moving toward "invisible adoption," where Lightning powers payments in the background.
A prime example of this shift is Square. By working to enable Lightning for millions of merchants through their ecosystem, they are effectively turning on the lights for mass adoption without requiring every merchant to become a Bitcoin expert. When large aggregators—payment processors, exchanges, and fintech apps—integrate Lightning, the utility of the network grows exponentially rather than linearly. We are seeing the early signs of a network effect that is fueled not by hype, but by utility.
Time to Shine
The roadmap has always been clear, even if the timeline was debated. We have successfully built the Vault (Store of Value), and now we are officially opening the Register (Medium of Exchange). Lightning did not "miss the boat." It was being painstakingly assembled in the dry dock while the ocean was being charted.
With the technology mature, the experts ready, and the base layer secured, the Lightning Network is finally ready for its true purpose: making Bitcoin a global currency. The waiting game is over. It is time to build, integrate, and transact.
Square, part of Block, Inc., has officially announced that its sellers can begin accepting bitcoin payments via the Lightning Network starting November 10, 2025. This rollout marks one of the most significant mainstream adoptions of Lightning to date — directly integrating bitcoin payments into Square’s point-of-sale ecosystem.
“The future of payments starts November 10. Accept bitcoin with zero processing fees until 2027 and keep more of what you earn.”— Square on X (@Square)
According to Square’s official releases page, this feature is available to U.S. sellers (excluding New York) using physical Square hardware.
How It Works
Square has made it simple for merchants to accept bitcoin without extra hardware or configuration:
Merchants enable Bitcoin Payments in their Square Dashboard or POS app.
At checkout, Square generates a QR-code Lightning invoice.
Customers scan and pay using any Lightning-enabled wallet.
Payments settle in seconds and appear in the merchant’s Square Dashboard.
Merchants can choose to keep bitcoin or convert it instantly to USD at the time of sale.
The integration leverages the Lightning Network for near-instant, low-cost bitcoin payments, bringing the speed and scalability of Lightning directly into physical retail environments.
Coffeehouse with 27 locations Compass Coffee DC is showing off Square Bitcoin Payments at DC Fintech
Fees and Timeline
Square confirmed that bitcoin payments will carry zero processing fees until 2027. After that, a 1% flat transaction fee will apply — significantly lower than traditional card-processing fees.
The rollout begins November 10, 2025, initially for physical-store sellers in the United States. Broader access and online availability are expected later as part of the phased deployment through 2026.
The first 20,000 U.S. sellers to enable Bitcoin Conversions, get $50 in BTC from Square
Availability and Limitations
U.S. sellers only at launch.
Not available to New York sellers or international merchants.
Physical locations only for now; online bitcoin payments will follow later.
Refunds: Square has not yet published details on bitcoin-payment refund mechanisms, though Lightning transactions are inherently irreversible.
Why It Matters
1. Mainstream Merchant Adoption of Lightning
By integrating Lightning directly into its POS system, Square is making bitcoin usable for everyday retail — from coffee shops to boutiques. This is the kind of adoption Lightning advocates have been waiting for: fast, seamless, and built into a trusted merchant platform.
2. Cost and Speed Advantages
Merchants can now process bitcoin payments instantly, with no processing fees for over a year, and far fewer costs thereafter. For small businesses, this reduces overhead and improves cash flow.
3. Merchant Flexibility
Square’s implementation allows merchants to accept and hold bitcoin or instantly convert it to USD, giving flexibility without exposing businesses to unwanted volatility.
4. Boost for the Lightning Ecosystem
Square’s move could significantly increase Lightning transaction volume, liquidity, and visibility. It positions Lightning as a viable, scalable payment layer — not just a niche protocol — within mainstream commerce.
The Broader Picture
This development reinforces Block Inc.’s long-standing commitment to bitcoin infrastructure. With Cash App already supporting Lightning, Square’s merchant integration closes the loop — connecting consumers and sellers in a unified Lightning-powered ecosystem.
If successful, this rollout could normalize bitcoin payments at the point of sale, encouraging more wallet adoption, better liquidity management, and higher network resilience.
What Comes Next
As the rollout progresses, key updates to watch for include:
Expansion to online sellers and international markets.
Clear guidance on refund and settlement policies.
Data on merchant uptake and real-world transaction volumes.
If adoption takes off, Square’s integration could mark a tipping point — moving Lightning from tech demonstration to a default payment option across real businesses.
Final Thoughts
Square’s decision to enable bitcoin payments with zero fees until 2027 is more than a promotional offer — it’s a statement of confidence in Lightning’s future. By bridging digital and fiat payments in one of the world’s most widely used merchant platforms, Square is turning bitcoin into a practical, everyday currency option.
For the Lightning community, this is the most consequential development since network activation: a real, tangible path for bitcoin to function as money — fast, cheap, and global.
To act quickly when opening channels in a Liquidity Swap or getting your offer accepted in the Liquidity Pool, timely notifications are crucial. In addition to on-site, email and Nostr, you can now receive notifications via the popular Telegram app as well.
The @LN_plus_bot will be added as a contact and will send you notifications. You can stop notifications or remove the Telegram link at any time through LN+ settings or directly in Telegram.
To ensure you can act quickly when opening channels in a Liquidity Swap or getting your offer accepted in the Liquidity Pool, timely notifications are essential. In addition to on-site and email notifications, you can now receive encrypted direct messages (DMs) through your preferred Nostr client.
To enable Nostr DM notifications, follow these two simple steps:
Go to your Nostr Linking within your Dashboard and link your Nostr npub with LN+.
Enable Nostr DM notifications on the same page.
Notes:
If you already use Nostr to log in to LN+, you’ve completed step 1.
To receive notifications, choose a Nostr app, such as 0xchat, from the list of available Nostr Apps.
Some apps may require you to follow our Nostr account to receive DMs, helping to reduce spam.
Nostr notification in 0xchat
If you haven’t explored the Nostr ecosystem yet, now is a great time to start.
Nostr is quickly becoming the social and identity layer for the Bitcoin and Lightning communities—so it only made sense to bring it into LN+. Starting today, you can use your Nostr identity to sign in to LN+ with just one click.
If you have a Nostr browser extension installed (like Alby or Nos2x), you’re good to go. Just choose “Sign in with Nostr”, approve the signature prompt, and boom—you’re in.
Already Have an LN+ Account? Link First
If you’re already using LN+ with your Lightning node or email login, be sure to link your Nostr identity from your Dashboard first. This ensures you don’t accidentally create a second account. Once linked, you’ll be able to log in using Nostr anytime.
Show Off Your npub
You can also choose to display your Nostr npub directly on your LN+ profile, adding a new way for others to connect with you across platforms.
More Nostr Features on the Horizon
This is just the beginning of our Nostr integration. Expect more features, deeper connections, and fun surprises soon.
If you’ve been following Bitcoin’s journey, you already know the Lightning Network (LN) is a game-changer. It’s been making waves in South America, helping people send money faster and cheaper than ever before. But what about Southeast Asia? Well, things are heating up, thanks to Neutronpay and Aliniex.
Aliniex, one of Vietnam’s biggest crypto exchanges, has just plugged into the Lightning Network using Neutronpay’s infrastructure. This move puts Southeast Asia on the map for LN adoption and could kick off a whole new wave of growth in the region.
Why This Matters for Southeast Asia
Southeast Asia is massive—over 680 million people—and while the digital economy here is booming, financial services? Not so much. Cross-border payments can be slow and pricey, and a lot of folks still rely on outdated banking systems. That’s where LN comes in.
LN’s magic lies in making Bitcoin transactions instant and dirt cheap. By leveraging Neutronpay’s infrastructure, Aliniex users can send and receive Bitcoin or stablecoins and convert them directly to local currency. Imagine transferring funds to a friend in another country or paying a merchant without dealing with high fees or long waits. That’s the kind of seamless experience LN is bringing to the table.
What Neutronpay and Aliniex Are Bringing to the Party
This milestone highlights Neutronpay’s role in driving the adoption of the Lightning Network across Southeast Asia. By leveraging Neutronpay’s infrastructure, Aliniex can:
Streamline Off-Ramp Services: Users can now directly convert Bitcoin and Stablecoins into fiat and transfer it to local bank accounts in 16+ countries, enhancing convenience and reliability.
Deliver Fast Bitcoin Transactions: With Lightning Network integration, Aliniex offers near-instant Bitcoin transfers at lower costs.
Expand Across Asia and Africa: This integration allows Aliniex to scale its operations to emerging markets, meeting the demand for accessible financial tools.
Why This Is a Big Deal
LN adoption is no longer a “someday” dream. It’s happening right now, and partnerships like this one prove it. Aliniex isn’t just upgrading its platform; it’s setting a precedent for what crypto services can look like in Southeast Asia.
This could also push other exchanges and companies in the region to adopt LN. The more businesses that jump on board, the more valuable and widespread LN becomes. It’s a domino effect that benefits everyone in the Bitcoin ecosystem.
Albert Buu - Founder and CEO of Neutronpay said:
"I am thrilled to welcome Aliniex as they integrate our Lightning Network API solution into their platform. This reflects a shared vision of the future of digital payments, where businesses can offer their customers the speed, efficiency, and innovation that Bitcoin's Lightning Network enables. Aliniex's decision to embrace this technology demonstrates their commitment to staying at the forefront of the evolving payments landscape. As new generation of users driving demand for advanced digital payment solutions, I'm proud to provide the infrastructure that helps forward-thinking companies like Aliniex deliver cutting-edge payment experiences to their customers."
A Glimpse at What’s Next
Southeast Asia could become the next big hotspot for LN adoption, following in South America’s footsteps. With Neutronpay and Aliniex leading the way, the region is showing it’s ready for fast, affordable, and accessible financial tools.
For those of us who’ve been waiting to see LN take off globally, this is a big step forward. It’s proof that Bitcoin’s second layer isn’t just a cool idea—it’s solving real problems and making crypto easier to use for everyone.
The Lightning Network is a game-changer for Bitcoin, making transactions faster, cheaper, and more private. It’s perfect for tiny payments, like tipping or pay-per-use services, and handles them instantly with almost no fees. By splitting payments across multiple paths and using smart contracts, it’s very reliable and efficient.
It’s not just about payments, though—it’s powering cool apps for gaming, streaming, and messaging too. Built on top of Bitcoin, it scales the network to handle millions of transactions while keeping everything secure. With a growing global community behind it, the Lightning Network is bringing Bitcoin closer to everyday use.
Micropayments at Scale
The Lightning Network allows payments as small as one satoshi, the smallest unit of Bitcoin, 0.00000001 BTC. (Note that the concept of "1 satoshi" is currently in the process of being renamed to be simply pronounced as 1 bitcoin, and written as 1₿.) Traditional payment systems, like credit cards, have minimum fees that make small payments impractical. With Lightning, users can engage in pay-per-use models, such as tipping creators, paying for seconds of internet usage, or accessing premium content without subscriptions. This micropayment capability is especially valuable in regions where affordability and accessibility are key concerns.
Instant Transactions
Bitcoin’s base layer processes transactions approximately every 10 minutes, depending on block times. In contrast, the Lightning Network facilitates transactions nearly instantaneously by using pre-established payment channels. This speed is achieved through off-chain settlements that don’t rely on waiting for blockchain confirmations, enabling real-time payments for things like buying coffee or gaming.
Reduced Fees
Lightning Network fees are significantly lower than Bitcoin on-chain fees, which can spike during network congestion. Fees on Lightning are calculated based on a per-millisecond satoshi (ppm) model or a base fee, making it an economical solution for high-frequency and small-value transactions. For example, someone can send a few cents worth of Bitcoin without worrying about high miner fees.
Privacy
Transactions on the Lightning Network are routed through multiple nodes, making them inherently private. Unlike Bitcoin’s transparent blockchain, where anyone can trace on-chain transactions, Lightning payments only disclose the sender and receiver to the directly involved parties. This level of privacy appeals to users who value financial confidentiality.
Scalability
Bitcoin’s blockchain has a transaction limit of around 7 transactions per second (TPS), which is inadequate for global-scale adoption. The Lightning Network overcomes this limitation by processing the majority of transactions off-chain, leveraging payment channels to settle only the net result on the blockchain. Theoretically, this allows millions of TPS, enabling Bitcoin to compete with or surpass systems like Visa and Mastercard.
Atomic Multipath Payments (AMP)
AMP allows payments to be split into smaller amounts that travel through different routes on the Lightning Network. This enhances reliability since the entire payment no longer depends on a single channel having sufficient capacity. If one path fails, the remaining segments can still complete the transaction. AMP also optimizes liquidity by better utilizing available channel funds. More on AMP
Decentralization of Routing
The Lightning Network operates on a decentralized network of nodes, each capable of routing payments. This design ensures there is no central authority controlling the network. Anyone can set up a node and earn routing fees, incentivizing more participation and enhancing the network’s censorship resistance. The routing itself is dynamic, ensuring the fastest and cheapest paths are chosen for payments. More on routing fees
Applications Beyond Payments
The Lightning Network’s programmability makes it a platform for more than just payments. Developers have built apps (called Lightning Apps or Lapps) for purposes like:
Gaming: Real-time microtransactions for in-game purchases.
Messaging: Secure and private chat services.
Marketplaces: Peer-to-peer platforms for trading goods and services.
Streaming: Pay-per-second video or audio content.
Additionally, NFTs and digital asset transfers can be implemented on Lightning without congesting the Bitcoin blockchain.
Smart Contracts
Lightning leverages smart contracts to enforce rules for opening, using, and closing payment channels. For example:
• Hash Time Locked Contracts (HTLCs) ensure payments either settle within a specific timeframe or return to the sender.
• Multi-signature wallets require both parties to agree on the channel’s closing balance, ensuring trustless operation.
This makes Lightning a powerful tool for secure, programmable payments.
Rapid Growth
Since its beta launch in 2018, the Lightning Network has experienced exponential growth in capacity and adoption. By late 2024, the network hosted thousands of active nodes and channels with a capacity exceeding 5,000 BTC. Notable companies like Strike, CashApp, and Bitfinex have integrated Lightning, and regions such as El Salvador use it extensively for day-to-day transactions.
Layer 2 Technology
The Lightning Network is categorized as a “Layer 2” solution because it operates on top of Bitcoin’s blockchain (Layer 1). This approach provides the best of both worlds: the security of Bitcoin’s decentralized ledger and the efficiency of off-chain transactions. As a result, it scales Bitcoin while preserving its core features, like immutability and decentralization.
Community-Driven
The Lightning Network is an open-source project maintained by developers worldwide. Implementations like LND, Core Lightning, and Eclair are community-built and interoperable. This collaborative ethos has driven innovation, ensuring the network evolves in a decentralized, user-focused manner, free from corporate or government control.
These attributes showcase the Lightning Network’s potential to revolutionize not only Bitcoin but also global finance and the internet economy. For a better understanding of the Lightning Network, read this post about LN explained with real world analogies.
Group Channel Opens is an exciting new feature on LN+ within the Liquidity Swaps section. It allows a group of node operators to open multiple channels with a single bitcoin transaction resulting in massive savings, and automatically balancing channels from the get go. Let me explain the benefits, the drawbacks and requirements for using such swaps.
The Benefits
Only one bitcoin transaction is used to open 3, 4, or 5 channels. This saves block space and consequently makes the channel opening cheaper. Significantly cheaper in fact. In a triangle, square and pentagon the block space and cost savings are appr. 52%, 58%, and 62% respectively.
All channels are balanced on opening. This means both the outgoing and your incoming channel will have 50% capacity, which is ideal for routing payments, and allows you to both send and receive on both channels.
All channels are only opened if all participants in the swap sign the transaction. It's all or nothing.
Single transaction results in 3 channels opened
The Disadvantages
Only works with LND nodes.
Requires BOS (for now) and terminal (command line interface).
All participants need to keep their terminal window open until all participants joined and the transaction is broadcasted, which is why triangles are the best bet in most cases.
Filter the Swaps for Platform: LND/BOS Only, and join one you like.
If you can't find any matching swaps, start one and within the form select the checkbox: LND/BOS group funded channel open users only. It's recommended to do a triangle, because it's easier for all 3 participants to be online roughly at the same time.
Follow the instructions and commands provided by LN+.
Wait for the bitcoin transaction to confirm and enjoy your two new channels.
Profit!
This is how the Terminal window will look like from A's point of view, who initiates the transaction. The first command is generated by LN+ for A, and the rest is automated:
This is how the Terminal window will look like from B's point of view who joined the swap. The first command is generated by LN+ for A and B, and the rest is automated:
Atomic Multipath Payments (AMP) represent a critical advancement in the Bitcoin Lightning Network. By enabling the splitting of payments across multiple channels, AMP increases transaction success rates, improves network efficiency, and enhances scalability. This post explores the technical underpinnings of AMP, its benefits, limitations, and its role in the future of Lightning Network technology.
1. Introduction
1.1. The Lightning Network Overview
The Bitcoin Lightning Network serves as a Layer 2 solution designed to address the scalability issues inherent in Bitcoin’s base layer. By enabling off-chain transactions, the Lightning Network facilitates fast and cost-effective payments without congesting the Bitcoin blockchain. However, the success of these payments is often limited by channel capacity and routing constraints, which is where AMP comes into play.
1.2. The Need for AMP
Traditional single-path payments in the Lightning Network require a single route with sufficient liquidity to complete a transaction. As network usage grows, this approach faces scalability challenges, especially for larger transactions. Atomic Multipath Payments (AMP) solve this problem by allowing payments to be split across multiple channels, increasing the likelihood of successful transactions while utilizing available liquidity more efficiently.
2. Understanding Atomic Multipath Payments (AMP)
2.1. What is AMP?
Atomic Multipath Payments (AMP) is a protocol that enables the splitting of a single payment into smaller parts, each of which can traverse different channels in the Lightning Network. These parts are then reassembled at the receiving node, ensuring that the full amount is delivered securely and atomically.
2.2. How Does AMP Differ from Traditional Payments?
In contrast to single-path payments, AMP breaks down a payment into multiple smaller transactions, leveraging multiple channels at once. Unlike basic multipath payments, AMP guarantees atomicity, meaning either all parts of the payment succeed or none do, mitigating risks such as partial payments or stranded funds.
2.3. The Atomicity of AMP
Atomicity ensures that a payment is either fully completed or fully canceled, with no middle ground. AMP achieves this using cryptographic secrets and shared secrets derived from a base secret, making it impossible for partial payments to succeed independently. This is vital for maintaining trust in the payment system, as it ensures that users never receive incomplete transactions.
3. Technical Mechanics of AMP
Skip this section if you don't care about how AMP works under the hood.
3.1. How Does AMP Work Technically?
AMP relies on the generation of a single payment secret that is used to derive multiple child secrets. Each payment fragment uses a child secret, allowing them to be routed independently. The receiver can only claim the funds when all fragments arrive, using the aggregated secrets to reconstruct the original payment secret.
3.2. Payment Splitting Across Multiple Channels
When using AMP, a single payment is divided into multiple smaller transactions that are routed through different channels. These channels may take completely independent paths through the Lightning Network, thus increasing the chances of finding available liquidity across the network’s vast topology.
3.3. Security Mechanisms in AMP
AMP uses a combination of Hash Time-Locked Contracts (HTLCs) and a keysend mechanism with a payment secret to secure transactions. HTLCs ensure that payments cannot be released until the correct preimage is provided, while timelocks prevent stale or unresolved payments from lingering on the network, protecting both senders and receivers from risk.
4. Benefits of AMP
4.1. For Lightning Users
Increased Payment Reliability: AMP increases the reliability of payments by enabling the use of multiple channels. Even if one channel lacks sufficient liquidity, the transaction can succeed through alternative paths.
Ability to Send Larger Payments: One of AMP’s key benefits is that it allows users to send payments larger than the capacity of any single channel. This feature directly addresses one of the main limitations of the traditional Lightning Network.
Reduced Transaction Fees: By utilizing more efficient routing across multiple channels, AMP can reduce overall transaction fees, as payments are split across paths with better fee structures.
4.2. For Lightning Node Operators
Enhanced Network Liquidity: Node operators benefit from AMP by improving liquidity management. Since payments are divided among several channels, the network’s liquidity is utilized more effectively, allowing nodes to process a larger number of transactions.
Increased Routing Opportunities: With AMP, node operators gain more opportunities to route payments, thereby earning additional routing fees. The division of payments opens up more potential paths, increasing node participation in the routing process.
Improved Channel Utilization: AMP helps optimize the use of channels, balancing liquidity across multiple channels more effectively, leading to better channel health and longevity.
5. Limitations and Challenges of AMP
5.1. Technical Limitations
While AMP represents a significant step forward, it is not without limitations. The technology still faces constraints in terms of channel balancing and the complexity of managing multiple payment parts across diverse paths.
5.2. Liquidity Requirements
To effectively use AMP, sufficient liquidity must be available across all channels involved in the transaction. If the required liquidity is not present, even AMP payments may fail.
5.3. Privacy Considerations
Splitting payments across multiple channels could expose more transaction data to network participants, raising potential privacy concerns. Ensuring that users’ payment details remain confidential while using AMP is an ongoing challenge.
5.4. Adoption and Compatibility Issues
AMP adoption is not yet universal. Different Lightning implementations and wallets are in various stages of AMP support, creating compatibility issues for some users.
6. Software and Implementations Supporting AMP
6.1. Lightning Implementations
LND (Lightning Network Daemon): LND was one of the first Lightning implementations to support AMP. Its robust feature set and extensive developer community have made it a popular choice for AMP users.
Core Lightning (CLN): Core Lightning, previously known as c-lightning, has integrated AMP support, offering flexibility and configurability for advanced users.
Eclair: Eclair has also introduced AMP capabilities, enhancing its role as a Lightning implementation aimed at mobile and lightweight node operators.
6.2. Wallets Supporting AMP
Several wallets, including Phoenix, Breez, Eclair Mobile, Muun, WOS, and Electrum now offer AMP support, making it easier for everyday users to benefit from AMP’s advantages. Thunderhub, Ride the Lightning (RTL) and other tools also support AMP.
7. Enabling AMP on Supported Platforms
Implementing AMP requires specific configurations depending on the Lightning implementation you are using. Below are detailed steps for enabling AMP on LND and Core Lightning (CLN).
7.1. Using AMP in LND
Software Requirements: Ensure that you are running LND version 0.13.0-beta or later, as AMP support was significantly improved in this release.
Configuration Settings: In your lnd.conf file, add or verify the following settings:
[protocol]
amp=1
This setting explicitly enables AMP features.
Restart LND: After updating the configuration file, restart LND to apply the changes:
sudo systemctl restart lnd
Sending AMP Payments using lncli: To send an AMP payment using lncli, use the sendpayment command with the --amp flag:
lncli sendpayment --pay_req=<invoice> --amp
Replace <invoice> with the Bolt11 invoice you wish to pay.
Receiving AMP Payments: To generate an AMP invoice, use the addinvoice command with the --amp flag:
lncli addinvoice --memo="Payment for services" --value=1000 --amp
This will create an invoice that supports AMP payments.
Replace <amount_msat>, <label>, and <description> with your desired values.
7.3. Troubleshooting Common Issues
7.3.1. Insufficient Liquidity
Solution: Check your channel balances and consider opening new channels or rebalancing existing ones to ensure sufficient outbound and inbound liquidity.
7.3.2. Incompatible Nodes
Solution: Ensure that the nodes you’re interacting with also support AMP. Compatibility issues can arise if the receiving node does not support AMP payments.
7.3.3. Incorrect Configuration
Solution: Double-check your configuration files for typos or misconfigurations. Ensure that all required flags and settings are correctly applied.
7.3.4. Network Sync Issues
Solution: Verify that your node is fully synced with the Bitcoin network and the Lightning Network graph. Use commands like lncli getinfo (LND) or lightning-cli getinfo (CLN) to check the sync status.
Routing fee calculation is often confusing for Lightning Network operators, so here is a quick overview to explain how it works and how it's calculated.
As a Lightning Network node operator, you are only paid forwarding fees when a payment is forwarded successfully, as opposed to a failed forward request. The fee is calculated based on the outgoing channel. The incoming channel's fees you set on your node are irrelevant for fee calculation. Therefore, if you expect to forward many payments to a specific node, set the fees on the channel to that node according to your needs.
There are two types of fees:
Base Fee
This is the simpler fee to understand. For every single payment transaction forwarded, you receive a certain amount of satoshis (sats) that you set for the channel. For example, if you set 1 sat for the base fee and you forward 5 transactions, you will earn 5 satoshis. This fee ensures that you are compensated for the storage and processing power associated with each transaction on your node. It's crucial to note whether it's set in terms of satoshis or milli satoshis (msat). If it's set in msat, 1,000 msat is equal to 1 satoshi.
Fee Rate
This fee typically causes misunderstanding due to its denomination and the small numbers involved. Depending on the software used, the fee rate is either set in parts per million (PPM) or percentage. For the fee rate, once again it's important to note whether the fee rate is set in terms of satoshis or milli satoshis. For instance, in the popular Thunderhub application, setting a fee rate of 500 on a channel means 0.05%, and the denomination is in satoshis, not milli satoshis.
Nomenclature
When you query and set the fees of a channel in various Lightning implementations, the naming of the base fee and fee rate differs slightly.
Here is an example of a report on a channel in LND:
fee_base_msat is the base fee set in msat (milli Satoshis).
fee_proportional_millionths is the fee rate in PPM (parts per million).
CLN doesn't provide the fee rate in percentage terms.
Examples of Fee Calculation
Let's consider examples to understand how much you earn with a setting of a Base Fee of 1 sat and a Fee Rate of 500 set in Thunderhub on a channel.
Example 1: Single Transaction of 1 Million Satoshis
Base Fee: 1 satoshi per transaction = 1 satoshi
Fee Rate: 500 PPM means you get 500 satoshis per million satoshis forwarded. Thus, the fee earned is 500 satoshis.
Total: 1 + 500 = 501 satoshis fee
Example 2: Five Transactions of 200,000 Satoshis Each
Base Fee: 1 satoshi for 5 transactions = 5 satoshis
Fee Rate: 500 PPM for 200,000 sats is 100 satoshis each, times 5 is 500 satoshis.
Total: 5 + 500 = 505 satoshis fee
Handling Very Low Fees
Now, what happens if the fee is very low? Let's say the base fee is zero and the fee rate is 25 PPM, and you route 10,000 satoshis. The fee would be 0.25 satoshis. Since the smallest amount in Bitcoin is 1 satoshi, you can't earn and be paid 0.25 satoshis (or 250 milli satoshis). However, the money is not lost. If you were to route four such transactions through the same channel, the partial satoshi earnings will add up, and you will earn a single 1 satoshi (1,000 milli satoshis) eventually.
Understanding these fee structures and how they are applied will help you better manage your node and optimize your earnings from forwarding payments on the Lightning Network.
One crucial decision for a Lightning node operator is whether to open few large channels or many small ones. To assess this, we'll explore three hypothetical scenarios, each representing different channel configurations. These examples can be scaled up or down depending on the available funds, with the figures provided being solely for comparative purposes.
Scenario 1: Small Channels
Many smaller channels
Configuration: Ten channels with 1 million satoshis each.
Advantages:
High Redundancy: With ten channels, there is a greater likelihood that at least one channel will have the necessary liquidity for a transaction, ensuring almost certain payment success.
Potentially Lower Fees: With more routes to choose from there is a higher likelyhood to find a low fee route for incoming and outgoing payments.
Ideal for Small Payments: This setup is particularly suited for small transactions such as tipping, paying for content, and other microtransactions.
Disadvantages:
Limited to Small Payments: Larger payments require splitting across multiple channels, which can add complexity and potentially increase the transaction time.
Higher Opening Costs: More channels mean higher costs due to the fees associated with opening each channel, although this can be mitigated by batch channel opening.
Minimal Routing Income: Smaller channels are less likely to be used for routing, resulting in lower fees earned from this activity.
Scenario 2: Mixed Size Channels
Mix of large and small channels
Configuration: Five channels with 1 million satoshis each, and one channel with 5 million satoshis.
Advantages:
Balanced Redundancy and Capacity: This setup provides a good mix of redundancy and the ability to handle larger payments through the 5 million satoshi channel.
Versatility: Suitable for a variety of use cases, from small transactions to occasional larger payments.
Moderate Routing Income: The larger channel may be used for routing, generating some income from transaction fees.
Disadvantages:
Moderate Complexity: The mixed configuration may still face issues with liquidity in smaller channels, requiring careful management.
Variable Costs: While there are fewer channels than in the small channels scenario, the cost savings are not as significant as in the large channels scenario.
Scenario 3: Large Channels
Large channels
Configuration: Two channels with 5 million satoshis each.
Advantages:
Low Opening Costs: Fewer channels mean lower overall costs for opening and maintaining channels.
Ideal for Large Payments: Larger channels can handle significant transactions without the need for splitting payments.
Higher Routing Potential: These channels are more likely to be used for routing large transactions, generating higher fees.
Disadvantages:
Low Redundancy: With only two channels, the setup is more vulnerable to failures or liquidity issues. If one channel goes down or lacks the necessary liquidity, transactions may fail.
Centralized Dependency: Depending heavily on a few large channels can increase reliance on specific nodes, potentially leading to centralization issues.
Overall Considerations
When deciding on the optimal channel configuration, it's essential to consider several factors:
Network Connectivity: Ensure connections to both highly connected large nodes and medium-sized nodes to avoid over-reliance on centralized entities.
Frequent Connections: Establish channels with friends and businesses you frequently transact with, as direct connections can improve transaction efficiency for daily use.
Use Case Suitability: Align your channel strategy with your intended use case. Small channels are best for microtransactions, mixed channels offer versatility, and large channels are suitable for handling significant payments and routing.
Balanced Node: Ensure that you maintain a balanced node with channels that are at least partially empty on your side to receive payments and channels that are at least partially full on your side to send payments. This balance allows for smooth transaction flow in both directions. To achieve this, you may need other node operators to open channels to you. Consider using our Liquidity Swaps and Liquidity Pool services available on this site to easily and freely manage your liquidity needs.
Partner Fees: While large and well connected nodes may seem like a great option to be well connected, consider that they also typically charge more for transaction routing. Medium and small sized nodes are usually cheaper to route through.
In conclusion, there is no one-size-fits-all answer to whether it is better to open few large or many small channels on the Bitcoin Lightning Network. The optimal strategy depends on the specific needs and transaction patterns of the node operator. By carefully considering the advantages and disadvantages of each configuration, operators can tailor their channel setup to maximize efficiency, redundancy, and potential routing income.
Welcome to the next level of connectivity and functionality within LN+ — we are thrilled to introduce the LN+ Pro Membership, designed for users who are serious about maximizing their impact and visibility across the LN network.
What is LN+ Pro Membership?
LN+ Pro Membership transforms your experience by placing your node at the forefront of the LN+ platform. With this membership, your node doesn't just participate; it dominates. Whether it's on the front page, the Node Explorer, the Liquidity Swaps index, or the Liquidity Pool index, your node will consistently appear in top positions. Additionally, it will be distinguished by a PRO tag in searches and comments, instantly signaling your elevated status to the entire LN+ community.
Exclusive Features for Pro Members
Here’s a closer look at the exclusive features available to LN+ Pro Members:
Prime Node Liquidity Swaps: Start and participate in Liquidity Swaps that are exclusive to Prime nodes (explained more below) — users who have garnered 10+ positive reviews and maintain a 90%+ positive rating.
Prominent Visibility: Gain unmatched visibility by appearing at the top of critical indexes and rotating on the front page of LN+.
Ongoing Feature Access: As we continue to innovate, you’ll gain access to new features such as premium profile customization options, Pro API features, and exclusive courses offered through Layers Academy.
Support and Contribute
By choosing LN+ Pro Membership, you are not just enhancing your own node's capabilities; you are also directly contributing to the development of LN+ and the broader LN ecosystem. This is your chance to be part of something bigger — to support and shape the future of the network.
Flexible and Easy to Purchase
LN+ Pro Membership can be purchased for any number of days, starting with just one day, offering complete flexibility to suit your needs. Payments are a breeze with options including Bitcoin, either via Lightning or on-chain transactions. Remember, the longer your membership, the higher your node’s rank will be on various indexes.
Users who previously purchased the Node Highlight feature will be automatically grandfathered into the Pro Membership. This adjustment comes as we replace Node Highlighting with our new, more comprehensive offering.
Join Today and Ascend the Ranks
Don’t miss this opportunity to elevate your node and enjoy a suite of advanced features that will set you apart from the crowd. Experience the power of Pro Membership today and watch your node ascend the ranks with every passing day. Ready to upgrade? Your journey to prominence begins here, with LN+ Pro Membership.
Prime Nodes and Liquidity Swaps
While the new Prime Nodes label and Prime Liquidity Swaps are not included as a direct feature of Pro Membership, they are closely related and worth discussing in this context. As a Pro Member, you gain the ability to create what are called Prime Liquidity Swaps. These swaps are exclusively available to Prime Nodes, which are highly-rated nodes meeting specific criteria: having at least 10 positive reviews, with an overall positive rating of 90% or higher.
For instance, if your node receives 20 positive reviews and only 1 negative review, it qualifies as a Prime Node and is eligible to participate in Prime Liquidity Swaps. However, a node with only 3 positive reviews, or with 10 positive and 2 negative reviews, does not meet the threshold for participation.
The Prime Label, signifying your node's high rating, is prominently displayed on your Node Profile and is represented by a star symbol.
