@ -177,11 +177,13 @@ In this section we will start by choosing the right software to demonstrate the
The Lightning Network is accessed via software applications that can speak the Lightning Network protocol. A _Lightning Network Node_ (or simply "node") is a software application that communicates on a peer-to-peer basis with other LN nodes, forming the Lightning _Network_ itself. Nodes also include "wallet" functionality, so they can send and receive payments over the LN and on the Bitcoin network.
Lightning network nodes also need access to the Bitcoin blockchain, or another blockchain such as Litecoin. Users have the highest degree of control by running their own authoritative Bitcoin node and LN node. However, LN nodes can also rely on Bitcoin nodes operated by a third party, by using a lightweight protocol such as _Simplified Payment Verification (SPV)_ or the _Neutrino_ protocol.
Lightning network nodes also need access to the Bitcoin blockchain, or another blockchain such as Litecoin. Users have the highest degree of control by running their own authoritative Bitcoin node and LN node.
However, LN nodes can also use a lightweight Bitcoin client (commonly referred to as Simplified Payment Verification (SPV)) to partially validate the correctness of their blockchain.
==== Lightning Wallets
A fully functional lightning wallet contains a LN node and communicates as a peer on the LN. However, some lightning wallets do not contain an LN node, but rely on an LN node operated by a third party. Furthermore, some "lightning wallets" are _custodial_, meaning that their funds are in the custody of a third party.
A fully functional lightning wallet contains a LN node and communicates as a peer on the LN. However, some lightning wallets do not contain an LN node, but rely on an LN node operated by a third making it _custodial_, meaning that their funds are in the custody of a third party.
Every user must consider their own technical skills before deciding what type of lightning wallet to use. Those with strong technical skills should run their own LN node. Those with less technical skill but a desire to control their funds without any third party custody, should choose a _non-custodial_ lightning wallet which relies on a third-party LN node. Finally, those seeking simplicity and convenience, even at the expense of control and security, may choose a custodial lightning wallet.
@ -204,4 +206,4 @@ Here are some current examples of LN node and wallet applications for different
| lnd | Server | Full Node | Optional | Full Control |
| c-lightning | Server | Full Node | Full Node | Full Control |
| Zap Desktop | Desktop | Full Node | Full Node | Full Control |
| Eclair | Mobile | Lightweight |
| Eclair | Mobile | Lightweight | 3rd Party | Full Control |
Olaoluwa Osuntokun
5 years ago