You Can Now Get Paid (a Little) for Using Bitcoin’s Lightning Network

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Articles One of the developers of Lightning Alex Bosworth is considered to be the sender of the first real transaction on the Lightning main network.

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  • The Lightning Network: a huge opportunity to learn and earn money | Vancouvered Weblog

On December 27, shortly after the successful testing of the protocolhe reported on topping up his mobile balance with the help of a Lightning payment through the Bitrefill service. In February, the most famous pizza buyer Laszlo Heinitz joined the ranks of the first users. In he paid 10, BTC for a pizza, and this year he bought two pizzas via the Lightning Network.

The Victorious Procession of Lightning Today, the list of quick money like lightning accepting Lightning payments has expanded and includes sellers of clothing, jewelry, books, electronics, as well as cafes and restaurants. An interesting implementation of the technology was introduced by a Twitter user under the name Lightning KOala, as he created an on-line board called Satoshi's Place and perfectly demonstrated the possibilities of Lightning as a solution for micro-payments, since drawing one pixel on this board cost him one satoshi 0.

Recently, the CoinGate payment operator launched a pilot program allowing more than services to accept Lightning payments without risk.

The Lightning Network: a huge opportunity to learn and earn money

CoinGate took on the responsibility of the "insurer" in case the funds are lost. The program includes online stores that provide a wide variety of products and services, such VPN providers and hosting services, betting and online game sites, ski and snowboard rental service, a Norwegian restaurant, an organic food store, a wooden clock shop, and two porn websites. Mistakes of Youth The network is actively developing not only from the user side but also from the technical side.

Click to share on Telegram Opens in new window We are close to the two-year anniversary of the launch of the Lightning Network betawhich marks a milestone for the second-layer Bitcoin scaling solution that enables lightning-fast, cheap, off-chain bitcoin transactions. Running a Lightning Node Arguably, the best way to contribute to the Lightning Economy and generate revenue via the Lightning Network is by running a Lightning node. A Lightning node enables users to set up Lightning payment channels that other users can utilize to process payments across the Lightning Network. In exchange for operating a channel, users are rewarded via transaction fees, which Lightning node operators can set themselves. While the amount you can make by operating a Lightning node will not make you wealthy, the few hundred dollars per year you can expect to make at the current size of the Bitcoin Lightning Network can be seen as a small reward for contributing to the scalability and success of Bitcoin.

Back in January, the developers warned the first users about the risks and possible bugs, calling for the use of a test network. A number of services deliberately chose to use the live version of Lightning, however, arguing that real practice is "the best way to strengthen" the network and rid it of bugs, while the test network does not offer "the same adrenaline.

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According to Bosworth, this was not the first attack of this kind. While evolving, however, Lightning is developing protective mechanisms.

7 Ways to Potentially Make Money with the Lightning Network

Thus, the co-founder of Lightning Labs, Olaoluwa Osuntokun, is engaged in a security system that is designed to prevent fraudulent transactions. If an attacker attempts to conduct a transaction that steals money from another user, the victim has time to repel the attack.

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But to do this, quick money like lightning holder of the cryptocurrency must constantly monitor their accounts. This approach does not cancel decentralization, as the user can connect to any number of watchtowers without relying solely on one "sentinel.

How Much Can You Earn with the Lightning Network?

Various development teams are actively offering solutions to these issues and some of them, however, such as the onion-routing for routing payments, have already been implemented in the protocol. And, as it becomes clear, one of these changes will affect commissions in the network. In December, when topping up his mobile account through the Lightning Network, Bosworth wrote that the transaction was instant and without fees.

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Today, the average commission in the Lightning network is about one satoshi per hop hops measure the distance between the Lightning nodes since the payment during the routing process must pass through several nodes.

The commission receives and appoints node operators for its "contribution" to the delivery of the payment. Bosworth said that his monthly income from the Lightning Network is.

And although this is a ridiculous amount, the formation of the commissions market is an important stage in the development of the Lightning network, and Bosworth himself assigns a big role to it: " I think for many people, even OG HODLers, the satoshis earned for providing routing will be among the first BTC they ever earn outside of coin trading. The earning niche may be found in P2P," as Bosworth wrote in a recent tweet.

At the moment, there are 3, nodes in the Lightning network, but not everyone can become an operator. To manage a node of the Lightning Network and get the first earnings in Bitcoins or, more accurately, in satoshione needs some technical experience and a fairly large amount of memory on the device.

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For routing Lightning payments, one needs to download a full node of Bitcoin at about GB of data and the Lightning software itself. While running the node, the user must update the settings in the fees section by default they are zero.

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Recently, this functionality has been added to one of the popular Lightning software, the LND. Now, users can determine the size of the commission and track their income there. According to Bosworth, adding such an option to the LND will "stimulate more activity [in levying] commissions.

How to Earn Bitcoin By Running a Lightning Node

Bosworth believes that many people bypass his node, preferring free alternatives, and those who still send payment through it may simply not be able to build a free "bypass" route. Many developers are sure that this will not always be so, and they consider the introduction of commissions as a positive aspect.

In his opinion, even if the fees remain minimal, they can be useful for a number of reasons. First, the network needs liquidity. Each Lightning node carries a certain amount of liquidity.

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How much money can be transferred through it is based on how much money the node operator has blocked in the channel. Channels with more funds will be able to support larger payments or simply more payments.

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As Bosworth believes, the node has the right to charge a commission for such services. In addition, the commissions "provide a way for nodes to encourage people to use their channels or vice versa," says Woosley.

How to build a Bitcoin Lightning node for just $150

Bosworth notes that individual Lightning payments, for example, the exchange of one cryptocurrency for another, are more complex and, therefore, may be more expensive in terms of commissions. Reverse Commissions A so-called "negative fee" is possible in the Lightning network, when the user does not pay quick money like lightning operator of the node, but the operator pays the user for selecting it when plotting the route of his transaction.

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  • How to build a Bitcoin Lightning node for just $ - Decrypt

This is useful if the channel ends with funds and the operator wants to attract more incoming transactions. That is, in the general interest, operators will maintain low commissions. Many developers believe that the fees will remain low enough since the installation of nodes and the routing of payments in the Lightning network is not economically costly.

For the same reason, the co-authors of the Lightning protocol Tadge Dryja and Joseph Poon in predicted that the commissions would be "virtually zero.