Topic: Anyone ever use Kraken's Lightning Network? (Read 97 times)

Lightning Network is an off chain solution for Bitcoin users and if you feel struggling to use Lightning Network, you can use alternative solutions with altcoins like Litecoin, Dogecoin. They are Proof of Work altcoins and can provide you cheap transaction fees too.

If you want to use Proof of Work altcoin networks, you have to look at this one
https://howmanyconfs.com/

How many confirmations are equivalent* to 6 Bitcoin confirmations?

It will help you to estimate risk of using altcoin networks and if you accept risk, you can enjoy cheap fee. If Bitcoin network can provide you cheap transaction fee, it is always your best choice because Bitcoin network is a strongest one in cryptocurrency.

Lightning wallets are hot wallets, there's nothing to worry about using a lightning wallets but know that anything that has to do with exchanges are hot wallets, i may not want to make use of the an exchange for any reason if not on the occasion of the use of lightning network, i never make use of kraken exchange before but there's a way we can always learn to know more about things we need to know or do about lightning network under this link below.


Find answers to all Lightning network questions in one.
https://bitcointalksearch.org/topic/table-all-lightning-network-threads-in-one-place-5345664

needing their special wallet is because the 'channels' THEY use, uses locked BTC that are very old. meaning THEIR partners wont be YOU. you have to be several hops away where you create a channel with someone else on a path to kraken

you would need to use a separate thing where you set up a channel with someone, but that involves you locking your own coin you already have out of the system to lock up to tempt someone to channel with you.
you then need to get kraken to find a path to YOUR channel partner for your channel partner to then pay you kraken value. and then you need to get your channel with your channel partner to mutually close your channels so you can unlock your bitcoin and claim the value from kraken(via your channel partner)

then you can put that coin into a hardware wallet

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but if you are trying to move bitcoin to a hardware wallet, the bitcoin tx fee's to lock, then to open a channel and close a channel is 4x* compared to just giving kraken a btc address directly to your btc hardware wallet.. so LN is not a practical way to get btc to a hardware wallet


LN is only cheaper if you keep funds in LN and just ping pong balance with other user in LN rather then using onchain payments to pay people over time

to just receive value to lock in BTC hardware wallet as a single event. LN is not cheaper

*i say 4x because
1. moving your own hardware wallet funds into LN wallet =1 tx just to then be managed by your LN software. before you even opened channel
2. finding a channel partner in LN wallet to then open channel with someone = 2nd tx
2. closing channel with someone = 3rd tx to put funds back into your LN wallet outside of the channel
4. moving your own hardware wallet funds into LN wallet = 4th tx

Because hardware wallets are offline wallets. Lightning network has to do with online.

Some people use it to hold little amount of money.

It is available on some payment options.

For noncustodial means of using lightning network, people can open and close channel and use it to mix coins.

They are hot wallets.

Why not, if the buyer and seller agree to use it.

If you use wallet like Electrum, you will move coins from on-chain to open a lightning channel. Use it for payment and also use it to receive payment. You can move your coins back on-chain. Both opening and closing channel will require on-chain transaction fee which is the transaction fee paid to miners.

As lightning network adoption continue to increase little by little, it is getting accepted as payment option. Also if you know how to use it to pay and the receiver knows how to use it to receive, you can use it for remittance.

The adoption is slow, but still increasing. Let us expect more to come. But the reason for the slow adoption is because it is difficult to set up lightning network on wallets that you will open and close channel. But easy to use lightning wallets are existing now in a way the you will not have a node or open a channel. More exchanges are supporting it now also including Binance, OKX and some other exchanges.

Or used lightning network  anywhere else? I see Kraken exchange gives you the option to use LN to move bitcoin to and from Kraken exchange.
I used Kraken for years to buy bitcoin but so far have never used the LN option for any transactions. Is there any reason why I might want to?


Questions:

1. Since a special lightning wallet is required to receive bitcoin via the lightning network, does that  mean you can never use the LN to move bitcoin directly
into a hardware wallet such as Coldcard or Trezor? If so why hasn't any hardware wallets implemented LN? Technical limitations?

Is there any reason why anyone would choose LN over the main bitcoin network? I know LN fees are much cheaper but if you can't use it to move your bitcoin
to and from a standard hardware wallet then what is the point?

2. How secure are lighting wallets? Are they considered hot wallets?

3. Can LN be used to actually buy and sell bitcoin or is it only a means for moving BTC between wallets?

4. Are there any bridges available (lightning chain to BTC chain and vice versa)?

5. What are current practical use cases of lightning network (not just theoretical)? For example, are people currently using LN for international remittances
on any significant scale? Do any retailers use LN to accept payment for goods and services?

6. Is lighting network still in very early stages of adoption? LN is a great idea but so far adoption and real world usefulness seems very limited.