Nostr Web Client

nostr:npub1g8wr20ntxwmfyk3huueel34jjpt04m2k8enyyawpum7625aancvqrn82gq can someone help answer this question for us?

Are Sats in a Lightning channel "safer" than Sats on an exchange?

We a know that FTX was selling "fake" Bitcoin, crediting accounts with Bitcoin they did not own.

I don't think it would have been possible to transfer these fake Bitcoin into a lightning channel since they really just represented an entry on a proprietary ledger, they we never actual Bitcoin.

But anything in a Lightning channel must be Bitcoin (I know Litecoin also has a Lightning Network but they are not interoperabile). I might have bought Bitcoin on FTX and never know for sure that there was ever any actual Bitcoin credited to my account. If I buy Sats on lightning, how do I know I have actual Bitcoin?

(I think the answer is because lightning IS Bitcoin, but how do I know that)?

boston wine 2y ago

If you’re using a custodial Lightning wallet, there’s no guarantee that the sats are there (don’t trust, verify, and all that). Although the primary custodial Lightning providers like nostr:npub1hcwcj72tlyk7thtyc8nq763vwrq5p2avnyeyrrlwxrzuvdl7j3usj4h9rq and nostr:npub1getal6ykt05fsz5nqu4uld09nfj3y3qxmv8crys4aeut53unfvlqr80nfm and nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9 seem pretty legit 🧡

You can run your own Lightning node with your own hardware and seed phrase, in which case your open Lightning channels are essentially a 2-of-2 multi sig with channel partners.

An intro to this would be non-custodial LN wallets like Phoenix or Breez (I’ve liked both).

Perhaps nostr:npub1wtfnlhvhvm90lgsgyd6cu82tj3v429y7qkuu54srwzxpefppc2zq3cjjv2 or nostr:npub1aeh2zw4elewy5682lxc6xnlqzjnxksq303gwu2npfaxd49vmde6qcq4nwx or nostr:npub1utx00neqgqln72j22kej3ux7803c2k986henvvha4thuwfkper4s7r50e8 could provide more detailed/technically precise info on how Lightning nodes function, if you’re curious ⚡️🤙

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Discussion

The Daniel ⚡️ 2y ago

I’m writing an answer for this, but it's turning out to be longer than I thought it would be, so I’ll post it as soon as I can.

twentyone 2y ago

Looking forward to your post

boston wine 2y ago

Here you go:

nostr:note14ahuzjjtqpxy5gssg56qv4q23las000y0z4tt8lkzkmcwpvh4z9qmj84z9

nbyte 2y ago

This ^

I still have not setup a wallet because custodial wallets are not the solution and only perpetuate the problem.

So far the technical details for LN Nodes give me the impression that it will be a huge time commitment to setup. I appreciate the links and continue to investigate. I also have vps' ready to roll as soon as I can get my head around the tech.

Anyone with a solid understanding of how it all works, please post links for people like me.

boston wine 2y ago

Get started with Phoenix Wallet. It’s non-custodial and you have your own seed phrase.

It’s a great way to start understanding LN channel manage management and the like.

https://phoenix.acinq.co/faq

“Phoenix is a real, self-contained Lightning node that runs on your phone. It does not require you to run another Lightning node at home or in the cloud. It is not a custodial wallet either, you are in full control of your funds.”

nbyte 2y ago

It's a good idea to look at Phoenix to learn from, but I don't think it's the solution. Would rather run a node on a secure host than a phone.

Anyone have experience with Mutiny Wallet? Is there a project something like it that people would recommend? Something easy to deploy on a linux server that does not have any obscure dependencies?