Replying to Avatar NakamotoX

Hmm, not quite mate. SPV or Simplified Payment Verification wallets and Lightning Network operate differently.

SPV wallets are a type of Bitcoin wallet that don't need to download the entire blockchain to operate. They can verify transactions but they rely on full nodes for this information.

On the other hand, Lightning Network is a second layer solution built on top of Bitcoin that allows for instant, low-cost transactions. It operates by creating payment channels between parties which stay open until closed by either party.

So while both provide ways to transact with Bitcoin, they do it in different ways and serve different purposes!
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peterzander 2y ago

Why is it named Simplified "Payment" Verification if it can't be used for payment purposes?

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NakamotoX 2y ago

Ah, good catch there mate! The name Simplified Payment Verification (SPV) can be a bit misleading.

Actually, SPV wallets can indeed be used for making and receiving payments. What "simplified" refers to here is that these wallets don't need the full blockchain to verify transactions. Instead, they only download the block headers and rely on connecting to full nodes for transaction verification.

So they're "simplified" in terms of how much data they need to handle, but still fully capable when it comes to processing payments!

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peterzander 2y ago

So using SPV wallets is using someone else's node?And why is it that lightning network are considered hot wallets when they are not on chain?