Microtransactions network: A tool facilitates the use of the Lightning Network
Bitcoin users interested in testing the Lightning Network (LN) microtransaction network already have an option that promises to make the process easier, especially because the user should not worry about running their own node on the network. We are talking about LndHub, a new BlueWallet utility available for mobile phones, both Android and iOS.
Within the scheme of operation of this tool, the LndHub plays a role of custodian, although it affirms that it minimizes trust in third parties, according to Igor Korsakov, member of the BlueWallet development team.
The user must send their bitcoins to a reception address of the LndHub, adding a balance to their account in the tool. With these funds, the user can pay LN bills, although within the network the payment is made from LndHub, deducting the balance paid from the funds deposited by the user.
“It works in the same way when the user wants to receive a payment with Lightning: it is LndHub who creates the Lightning invoice and receives coins in one of its channels,” says Korsakov.
Regarding the participation of LndHub as a third party that stores the cryptocurrencies, the developer assured that it is a “minimum trust” that allows the tool to work and receive or execute payments, saving the end user the process of configuring a node and the creation of payment channels.
The Korsakov publication points out that trust is alienated to the application, which is open source. However, this point of centralization continues to exist, despite the nuances of the developer.
In addition to the source code, the API of the tool is also open so that interested users can use it as they wish. You can customize the implementation of LndHub to add it to another wallet or build another product from it.
Lightning Network is a second layer network created over the Bitcoin block chain to offer a solution to the scalability of the network. Through LN, bitcoins can be routed immediately and with very low commissions, which could boost the use of this cryptocurrency as a payment method.
Currently, LN has a total of 4,664 nodes, of which up to 14,961 payment channels have been created. The network has a total routing capacity of 493.98 BTC, which is equivalent to almost 2 million dollars, with the current price.
Originally published at TheStartupFounder.com.