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Specialised Lightning hardware can enable users to participate in the Lightning Network while enjoying all the benefits in an optimal way. A Bitcoin full node, a Lighting node and a Lightning wallet can perfectly run on a normal laptop or computer, but this will cost more resources and is less convenient. Lightning hardware can take these activities off your personal computer and save you electricity and a lot of effort.
What is the Lightning Network?
Different ways to participate in the Lightning Network
The advantage of Lightning hardware
Lightning hardware nodes
Lightning hardware wallets
The Lightning Network and a list of merchants
The Lightning Network is a micro-payment layer build on top of Bitcoin. On the Bitcoin blockchain all payments are registered and kept by all the full nodes forever. Lightning payments take place offchain. Only final settlement is done on the blockchain. This makes the Lightning Network much faster, cheaper and scalable than the Bitcoin blockchain itself. Extra features are made possible while the security system of Bitcoin is maintained and real bitcoins are used.
Bitcoin is the base layer of the internet of money and Lightning is the 2nd layer comparable with TCP/IP. Lightning will enable convenient payments, streaming of money and instant swaps. It will also be the foundation of decentralised exchanges and other applications. Extra layers with additional features will be build on top of the Lightning Network en open up to even more posibilities. Read more about the Lightning Network……..
There are different ways and reasons to participate in the Lightning Network. Consumers can pay privately and instantly for goods and services. Beside that, merchants can receive payments in a censorship resistant and fraud proof way. Also, node operators can earn fees by routing payments. Furthermore, financial entities can earn on providing liquidity and swap between on and offchain funds. For all these use cases it is optimal to run your own node.
For every possible participant there are great advantages of running your own software. Since this software have to be connected to the network 24/7 it have to run on hardware that is always online to be fully functional. When the device you are running the Lightning software on is offline you will not be able to fully validate your channel state and thus be dependent of 3rd parties (watch towers). You will also not be able to route transactions and thus make money with your node.
A specialised Lightning hardware device is the best option. Firstly, the use of electricity is relatively low compared to a general device like a PC or laptop that would normally be switched off when it is not used. Secondly, the software will require quite some resources: This can cause your device for personal use to become slow or overheated. Also, when the device is ONLY used to connect with the Lightning network, the chance to catch a virus or malware is much smaller. Thus your funds are more private and secure.
A lightning node preferable have to run on top of a Bitcoin full node and actually have to be online all the time. A lightning hardware node is a hardware device that contains a full node and a Lightning Node on top of it. This node can be used to connect to a Lightning wallet and to route payments. A Lightning hardware node enables you to fully validate all your own payments. It can also make money by routing in a secure and efficient way. Read more………
A Lightning hardware wallet is a hardware device that enables the user to sign for every action in the Lightning Network in a secure way. This greatly decreases the chance that hackers or other malicious entities make Lightning transactions on your behave. In other words it prevents them from stealing your money. Hardware wallets are already popular devices to store your cryptocurrencies today. They will make the use of the Lightning Network more secure and convenient in the future. Read more…………..