Last Updated on July 9, 2022 by Shounak
Bitcoin is a cryptocurrency that was created in 2009. It is one of the first decentralized digital currencies, as the system works without a central bank or single administrator.
The Bitcoin network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.
One of the biggest issues of Bitcoin is scalability, which is nothing but a network issue wherein the Bitcoin blockchain is unable to handle a larger amount of data in a short amount of time. Therefore a feature was introduced in 2018 for the Bitcoin scalability issue known as the Bitcoin lightning network.
Let’s first understand Bitcoin LN.
What is the Bitcoin lightning network?
Bitcoin Lightning Network is a second-layer payment protocol that operates on top of Bitcoin’s blockchain. It is designed to enable instant payments across the network with lower fees and microtransactions.
How does Bitcoin LN work?
It works by creating a channel with a third party which in simple words means a channel owner is in an agreement with a third party. A channel when created will ensure a speedy transaction with lower fees and enable micropayments.
All transactions will take place outside of the Bitcoin main chain between entering and exiting a channel, and this is referred to as settlement. Your balance will be updated on a regular basis, but no main chain transactions will take place.
Now you might be interested to know more about the channel.
What is a Channel?
A channel is where all of your and your other party’s Lightning Network transactions will be recorded and documented.
Many platforms have made improvements to Bitcoin, such as Bitcoin Gold, which they claim would fix scalability. Their solutions, however, appear to be short term. If the network is ever going to be scalable, it is continuing to come as a result of a project such as the Lightning network.
What are the Benefits of the Bitcoin lightning network?
1. Quick transactions
Bitcoin’s average transaction period is around 10 minutes. With the Bitcoin Lightning Network, this time can be considerably shortened. Microtransactions can be conducted in a matter of seconds using these networks.
2. Atomic swaps
Multiple blockchains could collaborate through payment channels with one another. Users will swap cryptocurrencies with one another using these networks.
3. Minimize Blockchain Bloating
Since a lightning network carries out layer-2 transactions, the base blockchain does not obstruct.
4. High security
The Bitcoin Lightning Network protocols allow safe and unattackable transactions. Unusually for its HTLCs, it uses onion routing.
5. Ongoing Enhancement
One of the fastest crypto space projects, it is no wonder that the lightning network has succeeded in attracting a somewhat healthy developers network. The Bitcoin Lightning Network is introduced very frequently to modern and more exciting features and updates.
6. Minimal transaction costs
Bitcoin offered super-fast transfers and low to no fees when it was formed. Standard transaction fees for Bitcoin will range anywhere from $0.2 to $4.
As we said before, however, the fees paid for lightning transactions are substantially lower. Bitcoin’s second-largest challenge-heavy fees could be addressed by the Lightning network.
We will discuss first mobile wallets as you can use LN is meant for mass adoption and comfort of using Bitcoin on the go. Then in the end we will shift our focus to a desktop wallet.
Bitcoin Lightning Network Wallet for Mobile:
Offered on iOS, Android, Windows, Linux, and Mac
You have to generate your networks
In the onboarding of new users, ZAP uses a different approach. The goal is to allow people, even when they have a new wallet without a channel, to use their debit card to get bitcoin sent on the Lightning Network. The customer then has the option to pay on the Lightning Network.
- ZAP is a non-custodian Bitcoin Lightning Network.
- Windows, Mac, Linux, and smartphones (iOS and Android) are supported by ZAP.
- ZAP will connect via Mobile’s remote node-Remote node, and its neutrino node is available on the desktop.
- KYC / AML is not required for the use of ZAP-but Olympus is not required.
- ZAP can have an Olympus clone of your pocket.
2. Wallet of Satoshi
Wallet of Satoshi is a mobile app that allows you to send and receive Bitcoin and Lightning payments on iOS and Android. The entire wallet is designed in the same block-like style as the logo and is available in black and yellow.
The wallet just has one page, which is the balance page, which appears when you first launch the app. The balance page features a clean design that just displays the information you need, such as your balance, previous transactions, the settings menu, and a send/receive button.
The wallet is straightforward to use. You can only download the software and send and receive LN payments easily. But, it will display In a fiat currency, the quantity of satoshi you have in your wallet and It won’t allow you to spend your last few satoshis as it is kept to be used to pay transaction fees.
Get started with this easiest way if you want to try those LN payments.
3. Breez Wallet
A mobile wallet that is both open-source and non-custodial gets Breeze listed in this article. The best feature of it is that you do not need to open a channel as it takes care of it. It is available for both Android and iOS.
After you have installed the wallet you will receive up to 1m satoshi in Lightning network payment. The bad part here is that you have to wait for 3 confirmations before the Lightning network channels get activated.
Breez makes backups as simple as possible it allows you to create a cloud backup. When you first use the wallet, a pop-up will appear requesting you to generate a backup until you do so or instruct it to stop. Google Drive is where this backup is kept. So you can always go back to it if you misplace your smartphone.
Some unique features that you get with Breeze wallet.
- LN wallet for Merchants
- Three types of fees
4. Zeus Wallet
Another non-custodial and open-source wallet that provides full control of your wallet. Zeus is a Bitcoin power user flash wallet that connects to your node directly via VPN or Tor and has a range of functionalities, such as BTCPay Server, Nodl, myNode, and RaspiBlitz, which include node options.
It includes the entire node and is available for both iOS and Android. With a QR code from anywhere, you can easily connect to your node. Zeus also helps you pay electronically, control your LN networks, provide adjustable fees, and help LND & C-Lightning.
5. Blue Wallet
Blue Wallet is a bitcoin on-chain wallet that embraces both the standard and custodial lightning network models.
Blue wallet helps you build (or operate your node) custodial lightning bags that can make transfers using the Lightning Network without opening networks, staying online, delivering cash or running and managing a node—driven by the LNDhub, this lightning model.
Thus functions the custodial model:
“If users transfer their bitcoins to a dedicated supplementary address and this amount is credited to their LndHub account. The customer will then pay Lightning invoices with this balance.
But it is LndHub, in reality, who pays the invoice, which deducts the account balance of the consumer.
It functions the same way when the customer needs a Lightning charge-LndHub generates a Lightning Invoice and collects bitcoins actually on each of its frameworks.
Bitcoin Lightning Network wallet for Desktop:
Electrum has been one of the oldest bitcoin wallets on the market since 2011. It is a lightweight wallet, and it is one of the most popular ones on the market.
The Electrum Wallet is open-source software and is one of the most popular Bitcoin wallets. It’s also considered a lightweight wallet as it doesn’t require much storage space to install or use.
Released as a desktop wallet in 2011 that lets you store your bitcoins offline on your computer. Since its first release in 2011, it has seen many updates over time to improve its stability and usability.
It can be used as a desktop wallet or as a mobile wallet, which is available for Android and iOS devices. Electrum’s features include:
- Support for SegWit
- The Lightning Network
Note: Electrum was one of the first wallets to implement Segwit and has been supporting Bitcoin’s Lightning Network since March 2018.
Meanwhile, the Lightning Network is still in its beginning phases; some wallets are now open to the public.
Bear in mind that this wallet is not as checked as your regular bitcoin wallet, so be confident you can’t afford to lose in it. In general, LN growth seems to be accelerating worldwide, and hopefully, more wallets and utilities will be available for LN growth.
In this article, we have suggested some of the best Bitcoin Lightening networks wallets. Thanks for reading it and I hope you like it.
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