I am really trying to zero-in on what “self-custody” really means in the context of Lightning.
So far it seems to be a seed phrase that only you have, even though the service where it can only be used could disappear.
Does this sound about right?
Discussion
🤔🧐
Surely people running a lightning node have an offline back up of their seed phrase, right? I mean, I do…
Without control of the node (channel close) the node runner could refuse to ever let you cash out.
I’m no expert, but my guess would be control over channel closing of my channels.
I'd call it sole-control - not self custody
Sure, custody would be “I hold it for you.”
Control doesn’t have to be exclusive. Uncle Jim could also hold your seed.
Sole-control is much more descriptive.
Is there a way to *just* have sole control of your own lightning channel, or do you have to sole-control the whole node?
No. It is full self-custody.
The seed plus channel state allows you to unilaterally exit to chain if any of your counterparties go offline.
Thx. And to restore seed+ channel state where and how?
Sorry to be pedantic on the self-custody thing, but I need to know exactly how this all works and what the claims actually mean. Otherwise, it’s just trustwashing. With Zeus, I am running my own Lightning node under the hood, as I understand?
I’ve had a few surprises - running my own getalby node, only to discover my channels were closed and my funds disappeared. I use voltage for my lightning node host - great service but a few heart attack moments every once in awhile.
As for Lightning ‘self-custody’ the restore seems to be limited to the same node software.
Varies depending on the implementation.
The ZEUS seed can be imported into Blixt and Breez wallets. The seed can also be converted to BIP-39 so on-chain funds can be accessed in wallets like Sparrow. FOSS tools like chantools can assist in sweeping funds from channels and time locks.
All in all not your keys not your coins