I really don’t understand how LN wallets work. Why is it so hard to have self custody wallets without running a node? Breez wallet is cool but it’s not a very smooth experience

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because for your channel state to update you have to be online to sign the multisig transaction. Think of it as a bar tab with the amount of bitcoin that would go to each party of the channel when it settles onchain.

I see. I definitely hope more people focus on self custody LN. I’m getting to a point where I’m just going to run a node lol