What is Lighting Network for Bitcoin and Crypto Wallet?

Lightning Network rules are built on Bitcoin's blockchain to facilitate micro-payments. In this guide you'll learn how it works, as well as best lightning wallets.

By The 'Staunch

Lightning Network (LN) is a set of rules built on Bitcoin’s blockchain, and are specifically designed to facilitate micropayments.

If Bitcoin is built on layer one, the Lightning Network is considered to be built on layer two as a solution to easy transaction congestions.

The concept was originally introduced by Thaddeus Dryja and Joseph Poon back in 2015.

These developers significantly advanced Satoshi’s original Bitcoin code by introducing a decentralized network of lightning-fast transactions.

However, the Lightning Network is a relatively new concept allowing instant, fee-less Bitcoin payments.

Payments can also be made between users that are connected indirectly, via the network channels.

This network element is capable of linking users to the ‘fast and feeless’ system, through a routed series of transactions.

Now that I’ve explained what Lightning Network really means, let me also show you the wallets that allows the feature for crypto transactions.

Best lightning wallets

Lightning Network wallets are normal Bitcoin wallets with a capability to open an LN payment channel on the first Bitcoin network layer.

These wallets are not very user friendly, possibly since the Lightning Network is still in its early stages.

Now, let’s explore the best lightning wallets that can improve your transaction speed on the Bitcoin blockchain network.

1. Wallet of Satoshi

Wallet of Satoshi maintained its reputation by keeping a user-friendly interface that is very accessible for beginners and experienced users.

Its design ensures smooth and minimalistic navigation through the mobile wallet app.

This service provider stores the Bitcoin, while taking care of open payment channels, being a zero-configuration mobile custodial wallet.

This may be a downside for some people considering taking complete control over their Bitcoin wallet options.

However, it’s very convenient for people who want ease of use, as it’s available for both on iOS and Android devices.

Highlights:

  • Users can send Bitcoins from an exchange and purchase them in their wallet
  • The app locates merchants that accept LN payments and offers scan and pay
  • The wallet is well-operable, even for the beginners
  • In-built gateway facility from fiat to cryptocurrency
  • In-house Point-of-sales system for businesses.

2. Breeze wallet

Breez is a dynamic, non-custodial lightning wallet that works as an addition to the Bitcoin transaction ecosystem.

It is an innovative platform for lightning wallets due to its unique way of handling channels through a feature called zero-conf channels.

These channels are instantly active, while allow the users to start spending their funds just after they receive them.

Highlights:

  • Provides an excellent POS operating system
  • Beginners-friendly interface to operate
  • Users can swap between display currencies
  • Operates over its lightning routes
  • Conversion among various currencies at a time.

3. Electrum wallet

It’s an open-source and decentralized wallet maintained by a network of the independent community users.

This wallet keeps the funds secured, and they remain in control of the user, while none of your personal information is required for any function.

The easy of access made it an excellent choice for people looking for a lightning wallet that retains their privacy.

Electrum is exclusively a Bitcoin lightning wallet, as it does not add other crypto assets to your wallet needs.

Manually setting fees is not available for lightning transactions, as costs are determined by the network conditions and routing associated.

There is a compulsion to keep a minimum of two mBTC in your wallet account so that you can operate lightning wallets.

The software of this Bitcoin lightning wallet app is simple to its core, but you’ll need some time to understand how to use it.

Highlights:

  • Facility to create custom lightning channels for all sizes of Bitcoin transactions
  • Open-source applications compatible with the hardware wallets
  • No-frills Bitcoin storage experience with fast and secure Bitcoin trading
  • An added layer of security with passwords and 2-factor authentication
  • Its source code is available for people to inspect, evaluate, and enhance.

4. Phoenix wallet

This non-custodial Bitcoin cryptocurrency wallet is one of the perfect wallets for lightning transactions.

Phoenix is only available on mobile and is a secure option for those who are too concerned about their funds.

This wallet exclusively supports BTC for lightning transactions; other assets are available on-chain.

It automatically opens up the channels for payments on your behalf, with a creation cost of 1% of the transaction value with a minimum of 3,000 SATs.

On-the-fly feature of this lightning wallet allows users to increase liquidity without all the complex procedures.

Highlights:

  • Non-custodial and focuses on the security and user’s ease with its intuitive interface
  • Upfront fees and maintains transparency amongst the user and platform
  • Automatically supports channels generated for payments with a minimum charge of 1%
  • Users can conduct trustless swaps with other exchanges and trade in those crypto assets.

5. Eclair wallet

Eclair is an Android-only Bitcoin wallet app that provides you with option to be connected to the lightning network.

It runs on a stripped-down lightning node on the mobile phone, and computes your device’s payment routes.

This offers better privacy than regular crypto wallets, which rely on third parties to calculate the routes.

In terms of security, Eclair is highly advanced with encryption, backup and restore capability, 2FA, and open-source hardware wallets.

Its advanced features include multi-path payments and channels, making it versatile for most experienced users.

Highlights:

  • Easy to use interface for mostly beginners
  • Near instant finality in payments and no risk of double spending
  • Two-tiered architecture for Bitcoin payments
  • To settle transactions, there is no wait for the blockchain to confirm it
  • Wallet is equipped with a host of security features ensuring the funds are safe.

6. Blue wallet

Blue wallet can make quick and secure payments, as some of the features are custom invoices, seed backups, and 2FA.

It’s been constantly upgraded and improved by the community to make users assured of their coins and their safety.

The vault of Blue Wallet holds up a large amount of cryptocurrency for relatively long periods.

It supports multiple types of wallets, but to use a lightning network, then you’ll have to set-up and connect to a node.

It’s said that it’s the best lightning network wallet for those who have good knowledge of LN and how it works.

Highlights:

  • Simple user interface
  • Multi-wallet management
  • Open-source project
  • Responsive community feedback

7. Zeus wallet

This wallet needs the manual information of a node to become functional; making it a strong option for those who like to host their lightning nodes.

A popular alternative of platforms that provides automated payment channels, and it’s feasible for people who want total control over their wallet and its nodes.

Zeus wallets allow users to transact over the lightning network at zero processing fee, making it an affordable option.

Highlights:

  • No processing fees for operating over a node
  • Total control over the funds that exist in the wallet
  • Native POS systems exist with the wallet
  • Suitable for businesses that accepts Bitcoin lightning payments.

8. Zap wallet

Zap wallet allows users to manage their lightning payments without relying on any custodial service or centralized third party.

Users also have complete control over the funds and payments, as all of their funds are secured with private keys, but not on the Zap server.

It does not have any custodial service and hence uses external sources for the storage of keys.

The wallet has a TOR feature that offer privacy with the power to conceal not only the identity, but the transaction details as well.

Users can set custom payment channels that lessen the fee over lightning network payments.

Highlights:

  • Users can buy Bitcoin over the lightning network
  • Real-time conversion of fiat to Bitcoin feature
  • Runs over a full Bitcoin node with the help of its superb UI
  • Flexible platform for both experienced and beginners
  • Easy swap between BTC, SAT, and Bits
  • Custom fee system for transaction priority.

9. Muun wallet

Muun is a cryptocurrency wallet that makes it easy to send, receive and store Bitcoins, while utilizing the Lightning Network features.

It is simple to set up and secure with advanced features like multi-signature and hierarchical deterministic wallets.

Users can control their private keys, restore and back-up the wallet using secret pass-phrase.

Transactions can be monitored in real-time, and enabled notifications every time you receive funds or payments.

Highlights:

  • Almost free transaction with Bitcoin Lightning wallet
  • Instead of only fiat money, it allows you to show your Bitcoins as BTC
  • Intuitive and user-friendly interface for easy operability
  • Single balance is used to track transactions on-chain and lightning
  • Facility of wallet lock in case your device gets stolen.

10. Speed wallet

Speed wallet is the most reliable global solution for fast and fraud-proof Bitcoin transactions using the Lightning network.

In this custodial wallet, you can send and receive your BTC on the lightning network.

Its advanced features allow you to withdraw your BTC wallet balance into any other third-party wallet that can store it.

Apart from a small network fee charged by the miners, Speed does not charge transaction fees for using lightning speed features.

For the users, Speed provides easy-to-remember personalized LN addresses and supports LN URLs for smooth transactions.

Speed wallet makes sure it complies with all the regulatory bodies worldwide, and protects the user’s data by strengthening it for better security.

Highlights:

  • Send and receive Bitcoin without the need for KYC
  • Sign up with simple steps to continue fast transactions
  • Utmost security and accessible storage of pre-existing Bitcoins
  • 0% transaction fee, only a small network fee is applied by the miners
  • Access to different merchant features directly through the wallet.

In conclusion

The Lightning Network is a growing influence, and adoption suggest that it will only get bigger within time in future of Bitcoin.

It is a scalable payment protocol that enables instant, scalable, and low-cost micropayments.

Essentially, it allows transactions to be settled off-chain, without the need for a third party to result in lower fees and faster transaction times.

Hopefully by now you understand the basic concepts of what the Lighting Network is and the best lightning wallets that works with it.

In light of Bitcoin’s problematic drawbacks, the instant and fee-less Lightning payments will be able to replace credit cards, cash and other P2P transaction methods.

If you have not tried any of the wallets yet, it is high time to try out the convenience you are looking for in a mode of payment with Bitcoins.

About the 'Staunch

Henry is the founder of Crypto Staunch. He studied accounting and finance at Godfrey Okoye University, but became a Cryptopreneur to pursue his interest in learning digital currency and asset investment. Since 2018, Henry Kings has writing about Crypto, DeFi & NFT to help other people get started in the space. His publications has been featured in Binance Square, Digest Africa, Tech Economy, International Business Times, CoinDesk and many other top Crypto media outlets.

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About The 'Staunch

Henry is the founder of Crypto Staunch. He studied accounting and finance at Godfrey Okoye University, but became a Cryptopreneur to pursue his interest in learning digital currency and asset investment. Since 2018, Henry Kings has writing about Crypto, DeFi & NFT to help other people get started in the space. His publications has been featured in Binance Square, Digest Africa, Tech Economy, International Business Times, CoinDesk and many other top Crypto media outlets.