I don't get 'non custodial' lightning wallets
16 sats \ 12 comments \ @channel_ninja 23 Apr 2023 bitcoin
I'm talking about wallets like Phoenix, Blixt, etc.
In my mind self custody is trustless. Like with a bitcoin cold wallet. But with these so called 'non custodial' lightning wallets I do have to trust them.
Sure I have an actual lightweight node running on my phone, but I can't open any channels on my own. I only get private (unpublished) channels to the developers node. So the devs can see all of my payments and theoretically censor them (or be forced by government to censor them). And if their node goes down for whatever reason I can't use it anymore.
It feels like to me that they are just like custodial wallets with an extra step and more expensive because you have to pay the fees for opening the private channels.
Only way for true self custody is to run your own node I guess.
Or is my understanding of non custodial wallets wrong? Am I missing something?
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20 sats \ 10 replies \ @DarthCoin 23 Apr 2023
Blixt is a full LND node and you can open channels with whatever node you want. Yes, indeed are private (unannounced) channels but that is better, is a feature not a bug. A mobile LN node is not meant to be always online, so why would you open an unannounced channel? A mobile node is not meant to do routing, only payments, so no need for public channels. If you open public channels on a mobile node you are doing more damage than good. You said you want privacy, so why would you open a public channel then?
Phoenix, Breez indeed you cannot open channels with any other node. Also you have OBW and Electrum that you can open channels with any other node (if you do not use trampoline option).
You must learn more how to use these private nodes. https://darthcoin.substack.com/p/private-lightning-nodes https://darthcoin.substack.com/p/getting-started-with-blixt-mobile https://darthcoin.substack.com/p/obw-open-bitcoin-wallet
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21 sats \ 6 replies \ @roy 23 Apr 2023
You can open channels to other nodes with Breez: https://doc.breez.technology/Opening-Channels.html#opening-channels
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0 sats \ 1 reply \ @channel_ninja OP 24 Apr 2023
I should have done more research on other wallets. I just used Phoenix and just assumed the others worked the same.
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0 sats \ 0 replies \ @DarthCoin 24 Apr 2023
No worry, we are still early, you have plenty of time to test them.
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0 sats \ 1 reply \ @DarthCoin 24 Apr 2023
Roy, is it planned to do more development on actual Breez or are you concentrated to move on to Greenlight totally?
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21 sats \ 0 replies \ @roy 24 Apr 2023
We aren't depreciating on Breez Mobile. We continue to improve it, add features and keep up with the latest Lightning enhancements.
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0 sats \ 1 reply \ @DarthCoin 23 Apr 2023
Ah yes, I forgot about that hidden option. Thanks fro clarifying it.
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0 sats \ 0 replies \ @roy 23 Apr 2023
Or use lnurl-channel
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0 sats \ 2 replies \ @channel_ninja OP 23 Apr 2023
Ah okay, I have only used Phoenix so far and just thought Blixt, etc worked the same way. That makes more sense then.
Why do I mostly see Phoenix get recommended as a non-custodial wallet when it's basically a custodial wallet?
You must learn more how to use these private nodes.
Ah well, I run my own node, so I don't really need or use them anyways.
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10 sats \ 1 reply \ @DarthCoin 23 Apr 2023
You are running a public node. That means you are more exposed than a private node. It's all about what do you want to achieve.
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0 sats \ 0 replies \ @channel_ninja OP 23 Apr 2023
I actually didn't say anything about privacy. But trust.
It's all about what do you want to achieve.
Agreed.
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0 sats \ 0 replies \ @notgeld 23 Apr 2023
Yes. And adversarial LSP assume that you have regularly launch your wallet or use watchtowers.
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