Boltz Liquid Swaps: Rebalance Your Lightning Channels Cost-Effectively with an Innovative New Solution

Managing the liquidity of a Lightning node is a major challenge. However, a new solution called Liquid Swaps makes it easier for users to rebalance their channels. Find out how Liquid Swaps can help you keep your Lightning channels balanced and operational at a lower cost.

Charges for rebalancing Lightning Channels via mainchain exchanges can increase significantly, especially in these times when the Bitcoin network is saturated with Ordinals. This situation poses a challenge for individuals as well as businesses that depend on sufficient input capacity to accept payments or deposits on Lightning. Until now, there was no simple solution to solve this problem.

What is the Liquid Network?

The Liquid network is one of the oldest Bitcoin sidechains. It was created to meet the specific needs of companies and financial institutions. Which offers advanced and complementary features to the main Bitcoin blockchain, allowing fast, confidential and scalable transactions.
Liquid Network is based on a federation composed of several validator nodes, called “functionaries”, which are responsible for managing transactions and network security. These nodes are operated by trusted partners, such as cryptocurrency exchanges and financial institutions. They use cryptographic mechanisms to guarantee the reliability and security of transactions.
One of the main features of the Liquid network is its ability to issue digital assets, also called “tokens”, which are linked to real value, such as Bitcoin or other financial assets. These tokens are created and traded on the Liquid network, providing the ability to represent and transfer value more flexibly and quickly than on the main Bitcoin blockchain.
The Liquid network also has the advantage of offering faster transaction confirmation times. This is because blocks are generated there every minute, which allows for faster fund transfers and a better user experience, especially for commercial transactions and cryptocurrency exchanges. In addition, transactions can be confidential, their details (addresses of senders and recipients, amounts transferred) can be hidden.
In these times of mainnet congestion caused by Ordinals and BRC-20 transactions, it is worth remembering that Liquid Network was the first to offer NFTs on Bitcoin, without polluting the mainchain. So have a look at https://raretoshi.com.

The solution provided by Boltz Liquid Swaps

In this context, Boltz Liquid Swaps offers a solution by moving the rebalancing from the Lightning channels to the Liquid network. This approach has several economic and technical advantages. First of all, the Liquid network offers fast block times (1 minute) and transactions finalized in 2 minutes. Additionally, the fees on the Liquid network are significantly lower than those on the Bitcoin mainchain. This makes it an ideal base for affordable and reliable rebalancing of Lightning channels.

How it works ?

Let’s say you’re a merchant who accepts Lightning payments and you need to rebalance your channels to ensure enough ingress capacity. Here’s how the rebalancing process via Boltz Liquid Swaps works:

• Meeting on liquid.boltz.exchange and enter the amount of entry capacity you want to get in the “Lightning” field.
• Enter a Liquid address to receive L-BTC (Liquid Bitcoin) and click on “Create Atomic Swap”.
• Pay the Lightning bill of around 100,000 sats in the next step and wait for your L-BTC to arrive. This should take about 2 minutes, as the atomic swap protocol involves two transactions on the Liquid network: the first to lock your L-BTC and the second to unlock them atomically with your Lightning payment.
• Congratulations, you got around 100,000 sats of entry liquidity at a ridiculously low cost!

Liquid Swaps offers an innovative and affordable solution for rebalancing Lightning channels. By using the Liquid network, users can significantly save on rebalancing fees compared to trading on Bitcoin’s mainchain. Explore this new solution now and benefit from an effective and affordable rebalancing of your Lightning channels!