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There’s a great video on how lightning works, I can send it later when I have a computer to find the link
Discussion
I'm still a tard with lightning. I get the basic concept, but I'm confused as to why I have to provide liquidity for a custodial service to send me a payment to my self custody wallet.
Your self custody wallet can only receive up to the amount of the UTXO you have locked with a peer.
If you have a 5M UTXO locked on the lightning network, you cannot receive more than 5M sats without making a transaction on L1
Inbound liquidity is being sold to you by someone who is willing to lock their Bitcoin on lightning with you so you can receive payment beyond your channels maximum capacity
It’s the self custody aspect of your wallet.🎄