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COURSE 2 - 9.2. Lightning Network: custodial

Practically, Lightning Network (LN) can be used in two different ways:


  • Custodial. In this case, using LN is very easy: all the technical difficulty of LN is dealt with by an application on a smartphone However, this use of LN does not allow for sovereignty: the user must trust the (centralized) application with the custody of his sats.


  • Non-custodial. In this case, using LN is more difficult: LN node setup must me done manually; channels have to be opened manually one by one; the LN node must be online at the moment of the transaction. These and other technical hurdles make the use of LN more difficult. On the other hand, this approach to LN allows for sovereignty: the user does not need to trust a centralized application with the custody of his sats.


Here, I'll list list two of my favorite applications for a custodial use of LN (there are many others):


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