Blitz Wallet: Lightning Wallet Using Many Bitcoin Layers

Blitz Wallet is a Bitcoin Lightning wallet bringing different Bitcoin layers together (Lightning, Liquid, e-cash) for a smooth user experience.
How does Blitz Wallet work and why could it be a good wallet for Bitcoin newbies?

Problem: Finding the Right Wallet

There are many Bitcoin wallets available and recommending a specific one can be a difficult task.
Finding the right one depends on the use case and how much funds the user will store in the wallet.
You don't want to store large amounts on custodial wallets or solutions.
On the other hand, if you just send or zap very small payments, having your own Lightning channel might not be cost-effective.
Blitz is a wallet that automatically moves you higher on the sovereignty stack when the bitcoin balance in your wallet grows!

E-Cash for Small Balances

Let's say you're a new Bitcoin user and you download Blitz.
You have no balance in the wallet.
If you have e-cash toggled on in the app and you receive less than 1000 sats, the sats will automatically be e-cash tokens on your balance (found on the "Experimental" tab).
E-cash is a custodial scaling protocol for Bitcoin with private transactions.
If you're unfamiliar with Cashu, or Chaumian e-cash on Bitcoin, check out this earlier post I wrote: #688053

Liquid Network Bitcoin for Balances Below 500,000 to 1,000,000 Sats

If you exceed 2000 sats in your wallet, under the hood Blitz will move 1000 sats to your Liquid Network @liquid balance, and leaves 1000 sats for e-cash micropayments.
In the Blitz UI, Liquid balance is found on the "Bank" tab (interesting choice of words!).
Liquid Network is a federated sidechain of Bitcoin with its own trust trade-offs.
You can learn more about how Liquid works in this X thread I wrote in February 2024.

Opens a Self-Custodial Lightning Channel When You Exceed a Specified Balance

But.. self-custodial Lightning should be the goal for all self-sovereign Bitcoiners to make small payments!
Therefore, Blitz uses Breez SDK and Blockstream's @blockstream_official Greenlight to open a hosted Lightning channel for the user (if the user wants) if the wallet balance exceeds a specified amount (e.g. 500,000 or 1,000,000 sats).
You can learn more about Breez from this X thread I wrote in February 2024.
Blitz is self-custodial because you have written down your seed phrase!
If your channel gets force-closed, you can receive your funds on-chain.
The channel opening fee can be about 10,000 sats with current fee rates, so opening a large enough channel is recommended.
Once you have a Lightning channel open with enough liquidity for sending and receiving, Blitz treats all BTC as Lightning BTC.
You can also set a maximum channel opening fee you're willing to pay (by default 5000 sats).
If the fee exceeds that, your funds will stay on Liquid.
When receiving BTC, users can also choose which Bitcoin layer to use for the payment (not necessary though because Blitz does this on users' behalf!).
For all this back-and-forth between various Bitcoin layers Blitz uses a Bitcoin bridge Boltz @boltz in the back-end.
You can learn more about Boltz in this X thread I wrote in October 2023:
One downside for me when testing Blitz was that after my Lightning channel was opened, I couldn't receive Lightning payments instantly.
This was because I didn't have any inbound liquidity on my channel after the 500,000 sats deposit I made to open the channel.
Lightning channels need to be balanced, so that you have capacity for both outgoing and incoming payments.
I had to first make a Lightning payment from my new balance before I could receive again!
I believe I could have still received on Liquid though.

Point of Sale App and Integrations

Blitz wallet can be used as a point of sale app for receiving bitcoin.
You can set a store name and after that you can receive payments to a payment URL.
Employees of a store could use this URL to receive payments without them having access to the funds.
Blitz point of sale can accept Lightning, on-chain, Liquid or e-cash payments, and users don't have to be cognizant of which layer to use.
Just like credit card terminals don't really care whether you use Visa or Mastercard.
For some reason during my testing, I couldn't change my store name to "58k Gang Merch Store".
Instead, the app insisted on me keeping the default randomly generated store name.
Maybe a bug.. Blitz is still in beta after all.
"Store" tab on the right hand side of the dashboard gives users access to Bitcoin gift cards powered by The Bitcoin Company, ChatGPT credits payable with bitcoin, and integrations with sms4sats and LN VPN.

Still in Beta!

Blitz is available on iOS and Android for beta testing, and they instruct users to only put in funds that they're ok to lose.
The app is open-source and developed by Blake Kaufman with the UX/UI by Oliver Koblizek.
Some features that I missed (maybe these are forthcoming!):
→ Would be cool to import your Nostr graph and zap your contacts
Nostr Wallet Connect integration so Blitz could be used in other apps
→ set the e-cash threshold manually

Personal Bitcoin Security Advisor in Your Pocket!

Blitz is like a personal Bitcoin security advisor on your phone.
The more BTC you accumulate, the higher towards self-sovereignty solutions it nudges you:
E-cash ➡️ Liquid ➡️ Lightning
But the user just sends and receives while the app does everything on the background.
No more of that "Ok, so once you have this and that amount of sats you have to download this new wallet.. and then after you have stacked this amount you should move to this wallet etc."
What do you think of Blitz Wallet?
Have you tried it already?
How did you like the UX?
Are Bitcoin wallets like this the future?

Additional Resources

I agree with @DarthCoin and I want to expand on what he said:
This is an absolutely awesome way to make a user friendly Bitcoin wallet. I love the idea.
BUT. You need to find a way to abstract this stuff away from users altogether. Automatically assign them to different layers depending on their balance. I know this is easier said than done, because of the differences in disclosures on the different layers. But I think more effort should be put into it.
I strongly believe that "ecash" should be thought of in the same way we think of the database layer of an app. Typical apps do not start off by confusing users with sentences like: "This app uses SQLite. Please be aware that SQLite is not meant to be used for heavy industrial data solutions. Please be aware your data could be lost using this database."
Fuck that. Developers abstract these sorts of details away, and at the moment, Bitcoin developers are doing an absolute garbage job with the PR surrounding "ecash". It sounds like a shitcoin. People are confused.
Sure, we developer types get it. We love ecash, just like we love SQLite or mySQL. But FFS, keep this shit out of the public eye!
See my comment thread on this subject from a few months back: #557913
I want an app with all the features of Blitz, but with a UI like Zues. Actually, fuck that. Even Zues is silly by not finding a way to abstract LN/on-chain concepts from users. CashApp or Strike might be doing it best. Just find a way to be like CashApp, but add self-custody features for users with high balances.
But whatever, the main point I want my post here to get across is that ecash should be thought of like a DB layer. And we should only be talking about it in highly technical Bitcoin communities and podcasts. Don't confuse the non-techies.
reply
Is an interesting concept. I played around a bit with it, but is quite confusing. You literally force the user to go to ecash then to liquid then to LN.
What about if I want to skip all that garbage and go straight to LN, to real sats? Give the user more flexibility, do not force to use things that maybe are not necessary.
I understand you wanted to make an "easy to use" for all noobs but all the terms "bank", "lsp", "ecash" will only confuse more the new user. Is overcomplicated. For an experimented user with all these, yeah maybe is easy to use. But I tried with 2-3 other noobs and they get really confused.
Make it more simple and easy to understand. OK you want to add liquid and ecash, fine, but make them separate, not forcing the user to use them.
reply
I have tried it using test flight for IOS devices. The UX was similar to all the lightning wallets. I was not confused since I have been using Aqua, Minibits, CashU, and others as well. Yes the future of Bitcoin wallets will be like this. In my opinion.
reply
Are there a lot more features available on testflight for Blixt?
reply