How to secure LN sats? What demand will it create for bitcoin?
111 sats \ 8 comments \ @BitDaya 29 Aug 2022 bitcoin
2 questions:
1 - what is the best way to keep sats on LN? I am experienced with on chain wallets, seeds etc... but where do I store sats in a secure way? Any good reading about that? Any good source / advice would be appreciated.
2 - what do you think all these apps that implement LN could do to bitcoin demand? Any insights written about this topic and where it might be going?
write
preview
related posts
10 sats \ 1 reply \ @NordlysLN 29 Aug 2022
1 - You can either store sats on Lightning by running your own node. You're keeping sats in a hot wallet though so it will never be as secure as keeping your Bitcoin in cold storage, but as long as you secure your node well and safely store your seed you should be fine. The alternative is to go for a custodial solution by utilizing something like Muun, WalletOfSatoshi or some other reputable actor in the space if you dont feel like running your own node.
2 - The Lightning Network holds tremendous potential. It effectively solves the variable time and cost a Bitcoin transaction involves El Salvador's Bitcoin onboarding is pretty much completely based on Lightning (and level 3 solutions). We are still in the very early days of Lightning Network adoption though and there are several significant technological developments in the pipeline such as Pickard Payments / split payments that will make LN scale a lot better and handle larger transactions more smoothly. The LN hasn't seen the hockey stick level of adoption but I'm pretty sure it's coming. It's pretty much the only way for Bitcoin to be used for everyday payments. Furthermore, what Strike is doing shows that you can utilize Bitcoin the network without even thinking about bitcoin the asset, allowing users to essentially transfer dollars or any other form of currency over the Lightning network. If you don't yet understand the difference between Bitcoin and bitcoin I recommend reading up on that.
reply
0 sats \ 0 replies \ @BitDaya OP 29 Aug 2022
Thanks! Very interesting. I should see what are LN nodes. I have some digging to do. Also will see about running a channel if already exploring this... (did you experiment with it?)
Yeah I read (and wrote) about Strikes work, and saw Jack's amazing presentation to the IMF. But didnt get into the technicals of it. I have the book Mastering the LN but only read a few pages ... I guess its time to continue reading.
Anyways sounds like very interesting developments are coming for lightning. For me all the crypto fomo felt so shity because I started getting LN.
For instance I love Brave browser, but why use their coin instead of Sats? All the P2E as well etc... Hope soon the lightning renaissance will be upon us. Very exciting that we communicate now about Bitcoin thanks to the LN.
reply
10 sats \ 2 replies \ @2bithits 29 Aug 2022
As I understand, LN is a hot wallet so you don't want to keep too many sats on there to start with.
I think having a muun wallet with a couple of backups at different locations is reasonably secure
reply
0 sats \ 1 reply \ @BitDaya OP 29 Aug 2022
Thanks! And how do I change LN sats into on chain sats?
reply
10 sats \ 0 replies \ @NordlysLN 29 Aug 2022
If you're not running your own node there are several services that will swap sats for onchain/offchain for you.
reply
0 sats \ 2 replies \ @BitDaya OP 29 Aug 2022
Adding to question number 1 - when and how do you think is best to turn LN sats into on chain sats?
reply
10 sats \ 1 reply \ @2bithits 29 Aug 2022
If you are 'saving' in BTC (that meaning not spending or moving around), best to keep it on chain.
I see LN as an easy way to spend without the large fees. Buying coffee, a meal, small donations or items under $200 are what I personally use LN for.
reply
0 sats \ 0 replies \ @BitDaya OP 29 Aug 2022
Yes I am asking about the other side of it - if you get paid with lightining you want to keep at least some of it in cold storage. Never moved from off chain to on chain before...
reply