Launched in 2018, the Lightning Network (LN) allows bitcoin payments to be made instantly and almost free of charge. To make the best use of the network, you need a suitable wallet. Here’s why Phoenix Wallet meets all the conditions today to establish itself as the first solution on the Lightning network.
THE Lightning Network
THE Lightning Network is a second layer to the bitcoin network, also called layer 2. It was developed to meet a need for faster transactions. This is because the current bitcoin protocol is limited in terms of the ability to transactions per second. This is the famous question of “scalability”, which can be translated into French by extensibility : it is the idea that a network can operate with the same efficiency, regardless of its size. This property is part of the famous blockchain trilema: an imperfect balance between security, decentralization and scalability. Since BTC is very secure and decentralized, its weak point lies in the last property.
However, bitcoin aims from the start to be a “electronic cash system » designed to make daily payments. The solution ? deploy a second layer on the protocol, in order to unclog the network, by optimizing the number of transactions, in order to limit transaction costs on the blockchain. THE Lightning Network thus makes it possible to pay in sats (the smallest fraction of bitcoin) in less than a second, and almost free of charge.
Promote bitcoin micropayments
The interest of a portfolio supporting the Lightning Network is therefore to be able to pay for its everyday transactions: a coffee, some shopping, purchases from merchants accepting bitcoin. Of course, walking around with your laptop under your arm to buy your bread is not very convenient. This is why the most interesting wallets are obviously those that fit in your pocket. In other words, those compatible with a smartphone (or even a simple phone without internet!). Today there are a multitude of solutions for the young network Lightning Network. Blue Wallet, Breez Wallet, Wallet of Satoshi or the historic Electrum. These solutions are all compatible with the Lightning. But not all are equal.
Phoenix Wallet, a game changer on the Lightning Network
Today it’s Phoenix Wallet which seems to be more complete and accessible, while respecting the spirit of the self-custody (be master of his private keys). Easy to use, it is quickly configured: all you have to do is send 3000 sats (about 80 euro cents) to be able to open your payment channel. Where most other lightning wallets require several steps to perform this operation, in addition to sometimes significant costs. This feat is made possible by the implementation of the ” splicing“. According to the developers, this technology is a game changer. “Thanks to a unique and dynamic payment channel, no more 1% fees on incoming cash, more predictability and better control, with swaps without third party trust. ”
Other advantages of the Phoenix wallet:
- open-source : True to the spirit of bitcoin, the application code available for free access on Github. The community can thus use it for other application or software projects.
- Ergonomic : No bugs, and above all, an application is very light which requires few resources.
- Advanced Features: Phoenix Wallet offer a wide range of features such as its integrated block explorer. In addition, the possibility of going through TOR (routing in onion) makes it possible to circumvent censorship for possible countries which would block the Lightning Network.
- A converter integrated allows a real-time overview of its balance in Sats, in dollars or euros (even if the most convinced bitcoiners will tell you that 1 BTC = 1 BTC).
In addition, faced with the 2% of Bank charges that merchants have to bear on Visa or Mastercad transactions, paying free of charge via the Lighting Network is a real competitive advantage for bitcoin.
In conclusion
With several years of development, Phoenix Wallet now enjoys a certain maturity. It offers a user-friendly approach to master Bitcoin payments on the Lightning Network. By offering the best compromise between ergonomics and reliability, it is a further step towards the adoption of bitcoin for micropayments.
Caution: Although the Lightning Network is currently working properly, the network is still under development. It is therefore always necessary to make sure to reserve this network for small payments.
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