Replying to Avatar corndalorian

They do, but as far as the actual movement of funds if both the sender and receiver are both on the same node then the funds don’t actually move through any channels. This would also be true of 2 custodial alby wallet users sending to each other, or 2 custodial BlueWallet users, or 2 users on your own node at home. Does that still count as using lightning? Personally I think so, but I can also see his point on that.
Avatar
Smaug 2y ago

So it all stays in the custodial service lightning wallet? But is partitioned by their server into your account or mine.

Reply to this note

Please Login to reply.

Discussion

Avatar
corndalorian 2y ago

Yes correct. With any custodial wallet that is how it would work. There is the underlying liquidity and custodial funds, and then a user accounting system on top of it to track user balances. When a payment involves sending/receiving with another actual node then there is actual movement of those funds.