A tip for public node runners:
- Do you run a public routing node with good liquidity?
- Do you want to help some of your fellow new bitcoin users (friends and family)?
Onboarding them on self custodial Lightning Network is quite easy and free !
Activate 0-conf channels on your public node and let them open channels with your node with 0 sats opening fee.
They can make and receive payments with these channels as with any other ordinary LN channel, until are closed. They will pay the onchain fees ONLY when the channel is closed.
Remember: these 0-conf channels require some level of trust between the parties ! Do not open them with random nodes from internet.
Wallets supporting this feature: nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5 and Blixt. These 2 wallets and mobile nodes are also offering LSP on-the-fly channels, opened directly from depositing from a LN invoice paid from another wallet (if you do not have funds onchain).
Read more here:
- https://docs.lightning.engineering/lightning-network-tools/pool/zero-confirmation-channels
- https://docs.zeusln.app/for-users/embedded-node/trusted-funding/
"They will pay the onchain fees ONLY when the channel is closed"
So, the way this works is that the channel opening is not broadcast to on-chain nodes whatsoever, and the first time L1 even knows about the channel is at the time of closing? Is this correct? I'm just trying to get a better understanding of the technical aspect of 0-conf.
Technically you don’t even have to close it formally onchain, if you trust your counterparty as you can settle up out of band.
This works great if you are setting channels up between your own nodes.
Well that just blows my mind.
Normally, when a channel is closed, it's settled as two on-chain utxos, one for each side of the channel, into their respective wallet.
Now, you're telling me we never have to settle on-chain? Without new utxos, how is it settled at all? What does it mean to settle up "out of band"?
