The Lightning Network is second layer protocol built on-top of Bitcoin to enable cheap, instant and secure transactions designed to scale for global coffee payments.
A transaction on the Lightning Network costs a fraction of a cent.
The Lightning Network is still in the early stages of development and adoption, thus still improving and rapidly innovating.
- 1) Setup and use a lightning node
Just how using a Bitcoin node is the most secure way to transact on-chain, the same holds true for a Lightning node on the Lightning network. Once you setup a Lightning Node, you can connect it to a more user friendly Lightning wallet.
Note: A Lightning node requires a fully synched Bitcoin full node and some manual work to setup.
- 2) Download a Lightning wallet that connects to an external node
A light client wallet will work without your own Bitcoin or Lightning node because it connects to a remote lightning node from an external source. This means there is an element of trust required when using their wallet.
Many wallets have the option to connect your own Lightning node. There are also custodial wallets meaning they own the bitcoin stored with them.
- Open Lightning wallet
- Go through initial wallet setup process.
- Fund your Lightning wallet by sending bitcoin to it. Wait for the bitcoin transaction to confirm.
- Open Lightning channels with other lightning nodes using the available on-chain bitcoin balance in the wallet. Opening a channel can take some time to complete, but once opened you can transact with each other, anyone else that has a channel connected to them, then anyone connected to those nodes and so on.
- Lightning is great for frequent smaller valued transactions like shopping. Learn about Lightning here.
- Not spending frequently? Consider a Bitcoin wallet for storing your bitcoin.
- Not all companies have lightning integrated yet.
Bitcoin payments can be integrated through:
- hosting a BTCPay server
- a third party payment processor
Benefits of accepting bitcoin:
- global reach
- save on fees
- no charge backs
- collect less customer personal info
- safer than physically holding cash
Benefits of accepting Lightning payments:
- Designed for coffee payments
- save on more fees
- instant and secure transactions
- more private than bitcoin payments
- If you are not tech savvy consider hiring a developer to setup BTCPay.
- Enable Lightning payments.
- More BTCPay Video Guides
- bitcoin.stackexchange.com - Search for questions asked already or ask a question yourself!
- reddit.com /r/lightningnetwork/ - Search for questions asked already or ask a question yourself!
- reddit.com /r/Bitcoin/ - Search for questions asked already or ask a question yourself!
- lightningcommunity.slack.com/ - LND community on Slack.
- LN Mainnet Discord
- LightningNetwork/LND github - Reporting Lightning Network LND issues/bugs to developers.
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