housepainter on Nostr: My lightning wallet journey so far, potentially of interest to those who aren't fully ...
My lightning wallet journey so far, potentially of interest to those who aren't fully conversant with how it works.
I have used lightning for ages with Muun which is a self-custodial wallet but a bit of a hybrid of lightning/btc from what I can gather. And a raft of usual custodial lightning wallets from Play Store. But I have just set up #phoenix self custody wallet and learnt more about the workings of lightning in those few minutes than the whole period up til now. Such is the cost of convenience when everything is done for you and you remain clueless!
On Phoenix I set up a first invoice for a 1000 sats trial amount to transfer from alby. I was welcomed to the world of self custody with a 2400 sats fee. Steep wtf learning curve - I didn't understand the settings about an onchain fee to set up a channel.
After setting up the liquidity channel ( a term I have heard over and over without knowing what it really was) subsequent transaction fees are tiny/ single sats fees which I was used to when using custodial wallets on Nostr.
Phoenix works just fine now for up to 25000 sats total incoming payments, at which point the channel is closed.
In other words, the fee for setting up the channel on Phoenix is the cost of being a lot more self sovereign than when using convenient custodial wallets. Phoenix isn't completely trustworthy, by their own admission, but users are a lot less rug pullable than those using full-on custodial wallets.
I then learnt from Phoenix that it cost 7000sats to set up a liquidity channel to receive up to 500,000 sats. About 1.5% fee.
I am getting closer I guess to the world of nodes and true bitcoiner!, where you can set up your own liquidity channel by interacting direct with the btc blockchain? Is that how wallet devs are earning money, basically setting up liquidity channels with millions of sats capacity and handling lightning transactions for wallet users charging a miniscule fee that adds up over time?
Bitcoin is a never ending learning cycle. Back to the #painting.
I'm going to set up an offer "Jobs at Cost" to launch a new painting service. As long as half the discounted invoice is paid in sats. We will see.
I have used lightning for ages with Muun which is a self-custodial wallet but a bit of a hybrid of lightning/btc from what I can gather. And a raft of usual custodial lightning wallets from Play Store. But I have just set up #phoenix self custody wallet and learnt more about the workings of lightning in those few minutes than the whole period up til now. Such is the cost of convenience when everything is done for you and you remain clueless!
On Phoenix I set up a first invoice for a 1000 sats trial amount to transfer from alby. I was welcomed to the world of self custody with a 2400 sats fee. Steep wtf learning curve - I didn't understand the settings about an onchain fee to set up a channel.
After setting up the liquidity channel ( a term I have heard over and over without knowing what it really was) subsequent transaction fees are tiny/ single sats fees which I was used to when using custodial wallets on Nostr.
Phoenix works just fine now for up to 25000 sats total incoming payments, at which point the channel is closed.
In other words, the fee for setting up the channel on Phoenix is the cost of being a lot more self sovereign than when using convenient custodial wallets. Phoenix isn't completely trustworthy, by their own admission, but users are a lot less rug pullable than those using full-on custodial wallets.
I then learnt from Phoenix that it cost 7000sats to set up a liquidity channel to receive up to 500,000 sats. About 1.5% fee.
I am getting closer I guess to the world of nodes and true bitcoiner!, where you can set up your own liquidity channel by interacting direct with the btc blockchain? Is that how wallet devs are earning money, basically setting up liquidity channels with millions of sats capacity and handling lightning transactions for wallet users charging a miniscule fee that adds up over time?
Bitcoin is a never ending learning cycle. Back to the #painting.
I'm going to set up an offer "Jobs at Cost" to launch a new painting service. As long as half the discounted invoice is paid in sats. We will see.