Sign your transactions securely with a Lightning hardware wallet

lightning hardware walletWhen you use the Lightning Network you are transferring value. Therefore, security is anlightning hardware important issue. Because of the online and instant nature of Lightning, a first generation Lightning hardware wallet will probably only be able to secure actions like making a payment or closing a channel. This will greatly reduce the risk of theft, but not fully eliminate it. Anyway, a Lightning hardware wallet will increase the security of the funds that you use in the Lightning Network significantly.


What is a hardware wallet?
Why use a Lightning hardware wallet?
Buy a Lightning hardware wallet
Information about Lightning hardware
A pre-configured Lightning node
General Lightning Network information

What is a hardware wallet?

what is a hardware wallet

What is a hardware wallet?

A hardware wallet is a device that can create private keys in a protected environment. Therefore it can be used to make wallets for Bitcoin and other cryptocurrencies. The device is able to create a transaction in a secure environment and broadcast it online without revealing the private key. This means that you can actively manage your coins online while your keys are kept securely offline. 

A private key is unique and you are the only one that controls it. This means you can also proof ownership or identity with by signing with the device. This can be used to sign for a certain action. It can also be used to access a certain platform or stored files. The signature of the private key proves to the system that it can only be you who just signed. 

These signatures can be used in the Lightning Network. You can set your node or wallet to only execute an action when it is confirmed on the hardware wallet with a signature. This means that you can route transactions and collect fees within the security of the Lightning Network itself, but a transaction needs a signature. Therefore it can’t be done by a hacker who breaks into your computer. 

Why use a Lightning hardware wallet?

use lightning securely

Use Lightning securely

When you want to use the Lightning Network, the classic security measures like cold storage are not possible. The funds have to be online to interact with the network. This makes funds that are locked up in the Lightning Network more vulnerable to theft. When you make micro transactions this might be not the end of the world, but when you deliver liquidity to the network or receive many payments for your business it is a problem. 

The fees that can be collected by routing transactions are not that big. The risk have to be reduced to maintain a proper risk / reward ratio. It would be sad if you have made an interest of a few percent by running your node for years whereafter you lose everything in a hack. When a node is set up to route payments and funds can only be withdrawn by signing with a hardware wallet, this is much less likely to happen.

Buy a Lightning hardware wallet

When you want to buy a Lightning hardware wallet it is important to choose the one that is ahead in innovation. because complete security in Lightning Network will not happen any time soon, the goal is to approach full security as close as possible. The most innovative company will deliver this best. At the moment there is no Lightning hardware wallet available yet. Trezor and Bitbox are actively working on it and the first to be expected.