Exciting times are ahead for the LNbits community and dedicated Bitcoiners! LNbits has unveiled their latest software update, release 0.11.0, fondly codenamed "Leo". This release is not just about the routine stability improvements and optimizations. The big highlight is the introduction of the LNbits Node Manager. Let's delve deeper into the details.
Performance Enhancements
For those who've been avid users of LNbits, Leo brings in numerous optimizations and stability improvements, ensuring an even more streamlined, faster, and reliable experience.
A Special Mention
A commendable shoutout to @jackstar12. The excellence of this release greatly owes to their outstanding contribution, emphasizing how the community truly drives innovation at LNbits.
Diving into the LNbits Node Manager
The introduction of the LNbits Node Manager is set to revolutionize the way Lightning channels are managed. Here’s what users can anticipate:
Channel Management: Gone are the days of relying on extraneous tools or processes. With the LNbits Node Manager, handling Lightning channels is straightforward, all from within LNbits.
Transaction History: Transparency is key. Users can now effortlessly view their node's transaction history, showcasing a detailed list of all inbound and outbound payments.
Public Node Page: For those looking to expand their network, the Node Manager has a public node page feature. This simplifies the process for others wishing to establish a channel with your node.
Activation Simplicity: Engaging with these new features is a breeze. Just activate the node UI via the LNbits admin panel, and you're all set!
LNBits Channel Management
Future Prospects
While currently catering to Core Lightning and LND, LNbits is proactive and looks to broaden its horizon by adding support for more Lightning backends in the forthcoming updates.
LNbits release 0.11.0, or Leo, is not just another software update. It signifies LNbits' drive for innovation, enhancement, and most importantly, empowering the Bitcoin Lightning Network ecosystem. The LNbits Node Manager is here, and it promises to redefine convenience and efficiency.
When we ponder the impressive strides the internet has made in over three decades, it's perplexing to acknowledge the absence of an instantaneous and cost-effective global money transfer network. A conundrum indeed, but one that David Marcus, former PayPal President, and current CEO and Co-Founder of Lightspark, passionately seeks to resolve.
Most fintech enthusiasts might recall David's name from his involvement as the spearhead of Facebook’s ambitious Libra/Diem project, which, although now defunct, was a testament to his commitment towards streamlining global financial transactions.
Lightspark Wallet
On the recent episode of Fintech One-on-One, David discusses his journey and vision for the future of payments:
A Tech Maven: David’s extensive experience in the tech world sets a foundation for his current aspirations.
The Facebook Journey: We delved into the inception and evolution of the Libra/Diem project and what it aimed to achieve.
Birth of Lightspark: After Facebook, David channeled his energies to found Lightspark, a platform poised to revolutionize money transfers.
The Lightning Network: A significant portion was dedicated to explaining the intricacies of the Lightning Network – a layer that operates atop Bitcoin.
Lightspark’s Affinity for Lightning: David discussed the reasons for choosing the Lightning Network as their technological base.
Lightspark Unveiled: We got a clearer picture of Lightspark's operations, partnerships, and its target demographic.
The Current User Base: Lightspark's technology already boasts a userbase, which David touched upon.
Performance Metrics: How many transactions can Lightspark handle in a second? The numbers might surprise you!
Navigating Micropayments: David’s take on simplifying and making micropayments more efficient was enlightening.
Regulatory Labyrinths: The journey to scaling isn't without challenges, especially when regulations come into play.
Lightspark - A Different Rail: David emphasized viewing Lightspark as an alternative payment methodology rather than a rival.
Beyond Crypto: While based on blockchain technology, Lightspark’s mission transcends cryptocurrency.
Infinite Possibilities: From e-commerce to personal transactions, the potential applications of Lightspark are vast.
Programmable Money: David's views on the future, where money can be programmed just like software, were truly futuristic.
Internet-like Payments: David envisions a payment system as open, instantaneous, and interoperable as the internet.
Global Footprint: Lightspark isn’t confined to one region – they're already making waves globally.
Revenue Streams: A sneak peek into how Lightspark monetizes its cutting-edge solutions.
Last-mile Power: The synergy of real-time payments with Lightning is a game-changer, especially for the crucial last-mile transactions.
Commerce of the Future: Imagine a world with instantaneous global payments. David did, and he believes it's the path forward.
David Marcus' passion and conviction in creating a robust global payment network are contagious. If you're as intrigued as I am by the future of fintech, Lightspark is undoubtedly a venture to watch. Dive deeper into these insights by tuning into the Fintech One-on-One podcast!
LDK's rust-lightning is a highly performant and flexible implementation of the Lightning Network protocol. The release v0.0.117 of Rust-Lightning named "Everything but the Twelve Sinks" brought several API updates to enhance its functionality:
ProbabilisticScorer Improvement: The internal models of ProbabilisticScorer were significantly improved to boost payment success rates, albeit at a small cost to routefinding performance. This was achieved through better decaying, a more detailed historical channel liquidity tracker, and a new default option to estimate a channel's current liquidity non-linearly based on its capacity.
Custom TLVs for HTLC Recipients: This update allows the addition of custom TLVs (Type-Length-Value) for recipients of Hashed Time-Locked Contracts (HTLCs), enhancing the protocol's flexibility.
Third-Party Watchtowers Support: The ability to generate transactions for third-party watchtowers was added, providing an extra layer of security and oversight over channel operations.
KVStore Interface: The KVStorePersister was replaced with a more generic KVStore interface, bringing more features and flexibility.
Batch Funding of Outbound Channels: A new method for batch funding of outbound channels was introduced, optimizing the process of channel establishment.
Payment Path Probing: Before approving a payment, users can now probe potential payment paths using ChannelManager::send_preflight_probes.
Asynchronous ChannelMonitor Updating: In an alpha preview, fully asynchronous ChannelMonitor updating was introduced. However, it's noted that there are a few known but rare race conditions which might lead to a loss of funds.
Lightning Labs has ushered in an exciting update with the launch of LND 0.17.0 beta (see release notes). This version is packed with improvements, enhancing the user experience on the Lightning Network. Here’s a succinct overview of what’s new:
Introduction of Simple Taproot Channels
LND becomes the inaugural Lightning protocol to present Taproot channels, facilitating superior on-chain privacy and cost efficiency.
These channels merge the efficiency of Schnorr signatures with Taproot, making on-chain operations more space- and cost-efficient.
In the initial phase, these channels are unadvertised. Public Taproot channels are on the horizon with the development of Gossip 1.75.
Note: This feature is in the experimental phase. While users can use private Taproot channels for sending and receiving payments with hop hints, public payment routing isn't available yet.
Lightning Speeds with Neutrino
Neutrino, a Bitcoin light client tailored for mobile Lightning nodes, now syncs faster than ever.
Syncing nodes is now 400x quicker, thanks to improvements in filter fetching and storage. Filters are batch-fetched in groups of 1,000, slashing sync time.
Revamped Watchtowers
The new update introduces disk persistence for the watchtower client, minimizing memory usage and amplifying reliability.
Pending updates from removed tower sessions are now reallocated to other sessions, ensuring the consistent delivery of updates.
Looking Ahead
Upcoming versions promise more advancements based on Taproot Channels, such as Taproot Asset Channels and the integration of Gossip 1.75.
These developments hint at a brighter future for Bitcoin, merging the best of Taproot – privacy, cost-efficiency, and script versatility – with the Lightning Network.
Lightning Labs expresses immense gratitude towards the 30 external contributors who made this release possible. The community's continued feedback and engagement are pivotal in refining LND's offerings. To delve deeper into the release, check out the comprehensive release notes.
As the Lightning Network continues to evolve with Taproot integration, Bitcoin's prospects gleam brighter. Stay connected with Lightning Labs via LND Slack, Twitter, or by contributing to their PR. Remember, with Taproot channel integration, the future of Bitcoin is positively electric ⚡!
The LN is an overlay network on Bitcoin, designed to allow for faster and more economical transactions. While Bitcoin paved the way for decentralized currency, its scalability and transaction speed had challenges. The LN aims to overcome these hurdles, making global microtransactions a reality.
How the Lightning Network is Changing the Game
Cross-Border Transactions: Think of remittance payments, where billions are lost annually due to transaction fees. The LN can significantly cut down these costs. By swiftly converting currencies through Bitcoin, LN can enable quick and inexpensive funds transfer globally.
IoT & Machine-to-Machine Payments: The Internet of Things (IoT) holds vast potential, but monetizing it has been a challenge. The LN introduces a straightforward micropayment system. Imagine an autonomous taxi that pays for its charging or a smart fridge that handles its electricity bill.
Decentralized Exchanges: Centralized exchanges have been vulnerable to hacks, leading to massive financial losses. LN can bolster decentralized exchanges, eliminating the need to trust central entities with user funds.
Digital Assets Transfers: Beyond Bitcoin, LN facilitates the transfer of other digital tokens, like stablecoins. Using protocols such as RGB, the LN makes token transfers more scalable and confidential.
Ecosystem Growth: Several companies and service providers, like Zap, BlueWallet, and Bitrefill, are building around the LN, contributing to a robust ecosystem. From merchants to gaming app developers, a diverse array of stakeholders is capitalizing on the LN's capabilities.
Challenges Ahead
While the LN brings a plethora of advantages, it's not without its challenges. Liquidity constraints, concerns around privacy, and technical complexities are some obstacles that the LN faces. Overcoming these will be vital for the LN to become a mainstream tool for transactions.
Looking to the Future
The study concluded that the LN has the potential to revolutionize global financial infrastructure. As technology advances and research continues, improvements in performance, scalability, and security will become evident. The network's recent advancements, such as better payment routing and the release of user-friendly mobile apps, signal a positive trajectory.
In essence, the LN is more than just a technological marvel. It represents a step towards a world where businesses and individuals can transact seamlessly, swiftly, and economically across borders.
In the rapidly evolving world of digital transactions, the Lightning Network is indeed a beacon, promising a future where financial barriers are minimized and transactional efficiency is maximized. So, the next time you hear "Lightning Network", think of it as the future of transactions, today.
Bitcoin’s Lightning Network (LN) is a remarkable innovation that enables instant and low-cost Bitcoin transactions. But beyond simply sending and receiving payments, one of the essential functions within this network is "forwarding." In this post, I'll explore how funds get forwarded across the Lightning Network, the channels involved, the fees associated, and strategies to maximize node earnings. For a foundational understanding of the Lightning Network read this post first.
Forwarding: A Vital Cog in the LN Machine
In the Lightning Network, payments often traverse through multiple nodes before reaching their intended destination. This process is known as forwarding. Rather than a direct connection between the payer and payee, payments take a route through several intermediaries, leveraging existing payment channels.
Imagine Alice wants to send payments to Zoe, but they don’t have a direct channel between them. If Alice has a channel with Bob, and Bob has a channel with Carol, who in turn has a channel with Dave, and Dave has a channel with Frank, and Frank has a channel with Zoe, then Alice can forward her payment through Bob, Carol, Dave and Frank to get to Zoe.
Each hop along this path requires the node in question to forward the payment onto the next node, essentially moving funds from one channel to another until it reaches the final destination.
The Role of Public Channels in Forwarding
Only public channels participate in forwarding on the Lightning Network. When a channel is created, it can be designated as either public or private. Public channels are announced to the entire network and are listed in the network’s directory. This means any node can see them and use them as potential routes for payments. On the other hand, private channels are only known to the two parties involved, and they won't be used by others for forwarding.
The Cost of Forwarding: Two Types of Fees
Forwarding isn’t done for free; there are fees associated with it. The two main types of fees are:
Base Fee: This is a fixed fee that a node charges for every payment it forwards, irrespective of the payment amount.
Fee Rate (or Proportional Fee): This fee is proportional to the amount being forwarded. For example, if a node charges a fee rate of 1,000 ppm (parts per million), then for every 1 Bitcoin it forwards, it will charge 0.001 Bitcoin.
The total fee for forwarding a payment is a combination of these two fees. Different nodes can set their own fees, leading to a competitive marketplace for routing payments.
Reasons Why a Forwarding Request May Fail
In the intricate dance of forwarding payments through the Lightning Network, not every request goes through smoothly. There are several reasons why a forwarding request might fail:
Insufficient Funds in Channels: The most common reason is that one of the intermediary channels doesn’t have enough funds on the sending side. For instance, if Alice is trying to send funds through Bob to Charlie, but Bob doesn't have enough funds in his channel with Charlie, the payment will fail.
Channel Capacity: Even if funds are available, a channel might not have the required capacity to handle a large payment. Payments on the Lightning Network can't exceed the capacity of the smallest channel in their route.
Fee Mismatch: If the total fee required by intermediaries is more than the fee provided by the sender, the forwarding request can fail.
Channel Closure: If one of the channels in the route gets closed while the payment is in transit, the payment will not go through.
Route Unavailability: The Lightning Network tries to find the shortest and cheapest path for the payment. If no route is found that can handle the payment size or if all possible routes are exhausted, the payment fails.
Node Unreliability: If one of the nodes in the chosen path is frequently offline or unstable, it can lead to payment failure.
HTLC Limits: The Lightning Network uses Hashed Time-Locked Contracts (HTLCs) for secure fund transfers. There's a limit to how many concurrent HTLCs a channel can have. If this limit is reached, the channel can't forward any more payments until some of the current ones are settled.
Time Locks Expiry: Payments in the Lightning Network are locked for a certain time duration to ensure security. If the payment isn’t completed within this time frame (perhaps due to long routes or slow nodes), it will fail.
Privacy Concerns: Some nodes, due to privacy concerns, might reject payments that originate from or are destined to certain nodes, causing a forwarding failure.
Strategies to Maximize Earnings on a Node
If you're running a node and want to maximize your earnings from forwarding, consider these strategies:
Optimal Channel Balancing: Regularly monitor and balance your channels. If a channel is imbalanced (e.g., most funds are on one side), it may not be able to forward many payments. Using tools and services that help in rebalancing can be advantageous. However if you have a channel that always forwards only one way, balancing may not be necessary and even disadvantageous. Check each channel individually to see what kind of behaviour they demonstrate.
Competitive Fee Setting: Set your fees at competitive rates. If they're too high, users might opt for cheaper routes. If they're too low, you might not make a worthwhile profit. Monitoring the network's average fees can guide your pricing.
Strategic Channel Openings: Open channels with well-connected and active nodes. This increases the chances of your node being in the path of payment routes. However, large nodes are already well connected so you are competing with other channels that can handle the forwarding already. Smaller nodes could be a good source of traffic, especially if they are operated by active economic actors, like stores, payment systems, etc.
Uptime is Key: Ensure your node is online and reliable. If it frequently goes offline or is unstable, it will be less likely to be chosen for forwarding payments.
By understanding the intricacies of forwarding on the Lightning Network, one can better appreciate its decentralized and dynamic nature. Whether you're a casual user or a node operator looking to maximize profits, a deep dive into forwarding reveals yet another layer of the LN's innovative approach to scaling Bitcoin.
In this video Isabella Santos explores the bitcoin lightning network. She also goes backstage with David Marcus former PayPal president and current CEO & co-founder of Lightspark to talk about his new life mission.
The Bitcoin Lightning Network, a second-layer protocol built on top of Bitcoin's blockchain, has revolutionized microtransactions by offering rapid, low-cost transfers. This post explores the detailed steps involved in a transaction through a Lightning Network Payment Channel, illustrating how this technology has greatly enhanced Bitcoin’s scalability and utility.
Opening a Payment Channel
How and why to open a payment channel: Opening a payment channel is like establishing a private tunnel between two parties. This allows multiple transactions to take place off-chain, reducing congestion on the main Bitcoin blockchain. A channel only requires two on-chain transactions: one to open and one to close.
Funding the channel: To commence transactions on the Lightning Network, one needs to fund the channel. This involves committing a certain amount of Bitcoin from your wallet to the channel, which acts as the maximum capacity for transactions until the channel is closed or more funds are added.
Channel Opening
Transacting on the Lightning Network
Making transactions: Within the confines of a payment channel, parties can conduct an infinite number of transactions, as long as the cumulative amount doesn't exceed the channel's funding. These transactions are instantaneous, happening in real-time between the involved parties.
Updating the channel’s fund distribution: After each transaction, the distribution of funds within the channel changes. Both parties maintain a local copy of the channel's state. For instance, if Alice funds a channel with 0.5 BTC and sends 0.1 BTC to Bob through the channel, she now holds 0.4 BTC and Bob 0.1 BTC in channel balances.
Transacting on Lightning
Closing a Payment Channel
When and how to close a channel: A payment channel can be closed by either party at any time. To close the channel, the latest state (balance distribution) is broadcast to the Bitcoin network and processed as a regular transaction.
Settlement process: When the channel closes, the current balances are settled on the Bitcoin blockchain. Using the previous example, Alice receives 0.4 BTC and Bob receives 0.1 BTC in their respective wallets.
Closing a channel
Forwarding on the Lightning Network
One of the most innovative features of the Lightning Network is its ability to facilitate multi-hop payments. Rather than always requiring a direct channel between transacting parties, the Lightning Network allows payments to be routed through intermediary nodes. Let's break down a simple forwarding scenario:
Initial Setup:
Alice has a channel with Bob, where she possesses 0.5 BTC.
Bob, in turn, has a separate channel with Carol, holding 0.3 BTC of his own.
The Transaction Sequence:
Intent: Alice wishes to send Carol 0.1 BTC. However, Alice doesn't have a direct channel with Carol. Instead of establishing a new channel (which would be resource-intensive), Alice can utilize Bob as an intermediary to route her payment.
Transaction to Bob: Alice sends 0.1 BTC to Bob on their shared channel. After this, Alice's balance reduces to 0.4 BTC, while Bob's balance on the Alice-Bob channel increases to 0.1 BTC.
Forwarding the Payment: Bob, upon receiving the 0.1 BTC from Alice, forwards this amount to Carol on their own channel. This reduces Bob's balance to 0.2 BTC on the Bob-Carol channel, while increasing Carol's balance.
Forwarding Fee: For his role in facilitating this transaction, Bob retains a tiny amount—let's say a few Satoshis—as a forwarding fee. This incentivizes nodes to participate in routing payments, ensuring the fluidity and functionality of the network.
Forwaring on Lightning
Forwarding isn't restricted to just three nodes. Payments can be routed through multiple nodes, essentially connecting any node with any other within the Lightning Network. However, all this complexity is abstracted away from the user, with the task of finding payment routes being automated within wallets.
Multi-hop forwarding
This forwarding mechanism exemplifies the prowess of the Lightning Network, enabling transactions between parties that don't share a direct channel, and fostering a more interconnected and efficient network. Through smart routing and minimal fees, users benefit from faster transactions without the need for global consensus on every payment.
Advantages and Challenges
Speed, cost-efficiency, and privacy: The Lightning Network stands out for its rapid transaction speeds, low costs, and enhanced privacy. As most transactions occur off-chain, they don’t consume precious block space, resulting in lower fees. Additionally, since most of the transactions are kept private between two parties, it boosts transactional privacy.
Handling disputes: One challenge is the potential for disputes, especially if a party attempts to broadcast an outdated channel state. However, built-in punitive measures deter malicious activity. If someone tries to cheat by broadcasting an old transaction, the other party can claim all the funds in the channel as a penalty. Check out Watch Swaps to secure your channel balances even if your node is offline.
Conclusion
The Lightning Network, with its off-chain transaction capabilities, brings unprecedented ease and efficiency to Bitcoin transactions. As we move towards a future where instantaneous microtransactions become a norm, the importance and utility of the Lightning Network can only be expected to grow. Whether you're a casual user or a dedicated Bitcoin enthusiast, understanding the intricacies of Lightning Network transactions remains crucial in navigating the evolving landscape of digital currencies.
Hello dear passionate LN+ users and Bitcoin lightning community!
Some time ago, together with a few LN users we imagined a system reminiscent of a massive and extended liquidity swap (that many of you know well and use frequently), where every channel you open and every transaction you make is reciprocated over the long term. This isn't just a vision; it's the foundation behind the LN+ Liquidity Pool. Just as liquidity swaps allow for short-term reciprocity, our new system promotes long-term cooperation across the entire network. It's like the traditional concept of liquidity swaps, but on a grander and more prolonged scale.
At LN+, we're always looking for ways to up our game. We know the hurdles Bitcoin Lightning Network node operators face, and while we've got great solutions already, we're all about finding even better ones. So, get ready because today I'm unveiling a shiny new tool to help node operators.
Opening the LN+ Liquidity Pool
If you have a Bitcoin Lightning Node and you want to get incoming capacity, you can join our liquidity pool. In order to join you have to buy or earn liquidity credits. Once you're in the pool, nodes will open channels to you in return for your credits. You have full control over to whom you open and who opens to you. We will give you instructions all throughout the process to make it easy. You can monitor the status of the liquidity credit flow in your private section on your profile page.
How To Dive Into the LN+ Liquidity Pool
In order to get started you don't need to learn the process of how to participate in the pool, because we will guide you step by step all the way. However, if you're interested to get a quick overview, you can read about the process below:
Login with your lightning node to LN+ using a signed signature.
Optionally purchase liquidity credits and fast-forward to step 7, otherwise proceed to step 3.
Or, to get involved without spending, select a node in the pool to open a channel.
Patiently await acceptance of your channel opening offer (also called credit transaction) from the other node.
Upon acceptance, initiate the channel opening.
Watch as you automatically and gradually accrue credits over a span of 50 days – a fixed timeframe, during which the channel needs to stay open.
Once you've gathered some credits, other nodes will approach you with their channel own opening offers.
It's your call - accept or decline as you deem fit.
After accepting an offer, wait for a channel to be opened towards you by another node.
The cost of the new channels will be covered by your liquidity credits over the subsequent 50 days.
Nodes in the Liquidity Pool
Why Should You Jump In
Fluidity: No strict time frame constraints for opening and receiving channels.
Flexibility: Tailored channel sizes, depending on your preferences.
Inclusivity: Beginners and merchants can easily integrate with the community by buying liquidity credits.
Control: You decide your channel partners – both for opening and receiving.
Cost-effectiveness: Earn liquidity credits just by opening channels. Stay active within the pool, and you could maintain a profitable node without added costs of needing to ever loop out to establish incoming liquidity.
Credit Transactions between nodes in the Liquidity Pool
Liquidity Credits Explained
Central to the Liquidity Pool are the Liquidity Credits, ensuring that everyone gets their fair amount of incoming channel liquidity that is equal to the amount of liquidity they opened to other nodes. Liquidity Credits aren't a token or (shit)coin. Instead, they're an internal measure of owed incoming liquidity that can only be exchanged for incoming liquidity on LN+.
Node operators and merchants in need of significant incoming liquidity, you have the option to purchase liquidity pool credits directly from LN+, so that node operators would open channels towards you in return for your credits. The price of purchased liquidity credits is determined by LN+ based on market conditions with the intention to ensure there is always enough liquidity credits available in the pool to keep the pool functional. The price is subject to change.
Comparing the Pool with Swaps
I can't thank you enough for being passionate users of liquidity swaps in the last years. It is a huge success thanks to you. The pool is a direct competitor to swaps, so the question would naturally arise. How do the two services, the liquidity swaps and the liquidity pool compare?
Benefits of the Pool over Swaps:
You have full control over who you connect to. In swaps you partially rely on luck for some of your connections.
As a merchant, you can join the pool and start receiving channels even if you don't have capacity to open more channels of your own. This requires you to buy liquidity credits from LN+. In swaps, you're required to open channels as well.
Pool channel opens is a continuous process without a specific end. Swaps happen within a specific time frame.
In the pool the channels you open and the channels you receive can be of a different size and quantity. In swaps the opened and received channels are of equal size.
Benefits of Swaps over the Pool:
Channel opens happen potentially faster, sometimes within 24h. Pool is a continuous process without a specific end.
Some of the connections are partially accidental which is good for LN's decentralization and equity. The pool connections are fully under your control.
Easier to understand and explain how a triangle works with 3 node operators opening to each other. The pool has the concept of liquidity credits that ensures fairness in the system, but adds some complexity.
In case you are wondering, how the Liquidity Pool and Swaps compare to other solutions in the market? The most important benefit of LN+'s services is that you can use them entirely free to achieve incoming liquidity and to grow your node twice as fast without additional cost to open those extra channels.
The Pool is Now Open
I'm very excited to have you at LN+, and eager to hear what you think of the new liquidity pool. If you have any ideas, find any errors, need any help getting started, or want to resolve any potential issue, I'm available on email, in DM, or on social media. You can also learn more about the pool on the about page, which contains a glossary of important terms. Please don't think twice to reach out. And now...
The Bitcoin Lightning Network is a layer-2 scaling solution that enables fast and cheap bitcoin transactions. By running your own Lightning Network node, you not only contribute to the network's decentralization but also gain greater control over your transactions. This article will guide you through the process of setting up a non-custodial Lightning Network node using various solutions.
1. Lightning Network Daemon
LND for short is the most popular implementation of the Lightning Network protocol, because there is a rich ecosystem of apps around it that help you monitor and manage your node.
If you're comfortable with the command line, follow the steps below to get started. Otherwise, skip to the next option, which makes the process more user friendly.
Requirements:
A computer or VPS with a minimum of 2GB RAM.
Sufficient storage for the Bitcoin blockchain and the lightning channel states (1TB recommended).
Bitcoin Core or btcd (for the backend).
Steps:
Install Bitcoin Core: You need to run a Bitcoin full node for LND to work. Download Bitcoin Core from the official website and sync it with the Bitcoin blockchain.
Configuration: Configure your lnd.conf file with the appropriate settings.
Start LND: Once everything is set up, launch the LND daemon.
Create a wallet: Use the lncli create command to set up a new Lightning wallet.
2. Umbrel
Umbrel offers an easy way to run a Bitcoin and Lightning node using LND on a dedicated Raspberry Pi device, on your PC / Mac or on dedicated hardware they sell.
Umbrel Home
Requirements:
Raspberry Pi 4 (with 4GB or 8GB RAM recommended if you want to run many Umbrel apps).
MicroSD card (32GB minimum).
External SSD (1TB recommended).
Steps:
Download Umbrel: Head over to the Umbrel download page and download the latest release.
Flash SD Card: Use a tool like Balena Etcher to flash the downloaded image to your MicroSD card.
Setup: Insert the MicroSD card into the Raspberry Pi, connect the SSD, and power it up.
Access Umbrel: Open a browser and visit http://umbrel.local to access the Umbrel dashboard.
Complete Setup: Follow the on-screen prompts to complete your node setup.
You can also run Umbrel on a PC or Mac. Just run this simple command:
curl -L https://umbrel.sh | bash
Finally, Umbrel also sells ready made boxes with everything setup for you.
3. Core Lightning
Formerly called C-Lightning is Blockstream’s implementation of the Lightning Network. It is optimized for heavy users with many channels and forward transactions.
Create Node: Once registered, click on "Create Node" and choose your desired configuration.
Access Node: Once your node is live, you'll be provided with connection details to manage your node.
Manage Node: Use the provided interface to open channels, send/receive payments, and manage your Lightning node.
5. Start 9 Embassy
Embassy is an elegant, plug-and-play personal server for running powerful, open-source services like Bitcoin, Lightning, data storage, password management, instant messaging, social networking, and more.
Start 9 Server Pure
You can pick from 3 options of servers depending on your need. Everything is pre-installed, so this option is possibly the simplest way to get started if you have the funds to buy a dedicated server for your home or office.
6. Citadel
Citadel is a fork of Umbrel, and it's fully open source. Not only does Citadel include a large selection of apps already available, anyone from the community can build their own app store and you can install it.
Citadel App Store
Conclusion
Setting up a Bitcoin Lightning Network node is a rewarding experience, contributing to the network's growth and understanding the intricacies of the Lightning Network. Whether you opt for a DIY approach with LND or Umbrel or choose a managed solution like Voltage Cloud, you're taking a step forward in the world of decentralized finance.
Once you have your node up and running, come back here to LN+ and start opening channels in Liquidity Swaps with other node operators in a cooperative fashion.
Note: Always ensure you have backups of your node and wallet. Lightning Network is still experimental, and there's a risk of funds loss. Always act with caution and only commit funds you're willing to lose.
From today, you have the freedom to express your unique style by either uploading your custom image or selecting from a growing array of exciting backgrounds inspired by exotic, fictional locations in the post-Bitcoin standard era. This new feature provides the flexibility not only to pick your favorite image but also to choose its opacity against the text overlay, giving you the control over how your profile appears to others.
But that's not all! Your chosen background won't just enhance your profile; it will also automatically update your social image. Within a few minutes, your brand-new look will be visible whenever you share your node on your social platforms.
Getting started is easy. Simply log in with your Lightning node signature, and click on 'Edit' to start customizing your profile. Can't wait to see your creative flair in action!
Oh, and one more thing. You can also add links to your node profile for most social media platforms:
Social media links supported on LN+
Discover the power of the Bitcoin LightningNetwork. It offers safety, wide acceptance, speed, low fees, privacy, scalability, and opportunities for innovation.
Here the 7 things LN does really well:
1. Safe
The Lightning Network (LN) runs on Bitcoin, the world's most powerful computer network. Bitcoin provides safety & security that can't be beaten. Built on a solid foundation, LN ensures the safety of your transactions.
Safe bitcoin foundations
2. Accepted
Denominated in Bitcoin, the satoshis over LN are widely accepted & recognized globally. This makes it easy to use for online transactions to buy many products and services and use it increasingly in real life too!
Lighting payments are widely accepted online
3. Fast
Lightning-fast transactions! The off-chain nature of the Bitcoin Lightning Network means your transactions are completed in mere seconds. Time is money, after all.
LN transactions are fast
4. Cheap
Say goodbye to hefty mining fees! The Lightning Network offers cheap transactions at just a few satoshis per transaction. Keep more of your hard-earned sats.
LN transactions are cheap
5. Private
Privacy matters! With the Bitcoin Lightning Network, transactions remain confidential as they're not on the public blockchain. Secure your privacy while transacting.
LN transactions offer high degree of privacy
6. Scaleable
The Lightning Network scales to global levels! Information is only stored on involved computers & discarded when channels close, enabling massive scalability.
LN scales to global levels
7. Innovative
Build upon the Bitcoin Lightning Network. It enables various L3 innovations like authentication, assets, BiFi, payment streaming, and more. Unleash your creativity!
