Lightning on Blockstream Green

[Music] welcome back everyone I'm Drew your 
host of deciphered a show that explores best   Practices in Bitcoin by highlighting some of 
the cutting Ed features in our products like   The blockstream green wallet Jade satellite and 
others in today's episode we'll be talking about   Green light a new lightning service developed by 
blockstream that provides scalable non-custodial   Lightning infrastructure for app developers and 
businesses we'll also be discussing green light's   Recent integration into blockstream green 
bringing lightning capability to the wallet   A unique selling point of Greenlight is that it 
allows app developers and businesses to integrate   Lightning very easily through a few API calls 
while also ensuring users stay in full control   Over their own funds it's ideal for businesses 
wanting to integrate lightning without without   Having to deal with the technical overhead of 
Channel management and other node operations   But before we dive into green light and explore it 
firsthand in the new lightning capable blockstream   Green wallet let's do a brief overview of how 
lightning actually works the lightning Network   Serves as a second layer solution enabling 
near instant and cheap transactions allowing   The Bitcoin to scale to a global level to better 
understand this concept think of the Bitcoin main   Chain as the digital equivalent to Gold acting 
as the foundational Reserve layer in contrast   The light Network functions as its payment layer 
catering to Everyday transactions Additionally the   Liquid Network another layer 2 solution operates 
as bitcoin's Financial layer where assets like   Digital Securities and stable coins can be issued 
and flourish you may have come across the term   TPS or transactions per second and while Bitcoin 
traditionally has a low TPS rate by Design the   Lightning Network drastically increases this 
figure outperforming all other global payment   Competitors including other cryptocurrencies 
credit cards traditional banking systems and   Even physical cash transactions amongst friends 
when properly connected to suitable peers the   Lightning Network allows for nearly instantaneous 
settlement of Bitcoin transactions if you want a   Deeper understanding of how lightning actually 
works make sure you check out the previous core   Lightning episode of deciphered which I'll link 
in the description box right down below to better   Understand green light we first need to understand 
custody there are several popular ways to onboard   Someone to lightning each with various trade-offs 
and degrees of custody the first is through fully   Custodial services like a custodial wallet or 
exchange this tends to be the most convenient   And fastest way for someone to onboard another 
person users simply download an app or log in   Online to the service provider and the user can 
receive Bitcoin in seconds the big trade-off here   Is the user does not have full custody of their 
Bitcoin as they do not hold their own private Keys   As a quick refresher let's review why relying on 
custodial Solutions is not ideal first if the user   Loses their phone or computer that the wallet app 
is on there might not be a way for you to recover   Your funds second the company or developers behind 
the app could potentially be bad actors and gamble  

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With your funds or even run off with them though 
note if this were to happen there would likely   Be legal repercussions and perhaps you'd be 
compensated but it's not guaranteed see the   Recent FTX debacle and aftermath as an example 
third the user is dependent on the app to access   Their Bitcoin as there is no way to move those 
SATs off the wallet or recover the wallet to   Another app this severely limits your options and 
finally apps can censor your transactions based   On their own discretion and also reveal your 
payment history and habits to third parties a   Second onboarding option to lightning is through 
non-custodial wallet Solutions like Phoenix Breeze   And the new lightning capable block stream green 
wallet these wallets require the extra onboarding   Step of the user creating a wallet and using their 
own private Keys non-custodial wallets avoid the   Pitfalls of giving control of your funds to the 
app developers or third parties and should be   The preferred option for non-technical users the 
trade-off here however is on the back end for app   Developers who then have to operate the lightning 
nodes inhouse and become operation experts in the   Process taking precious time away from focusing 
on ux and building their own app developers also   Incur significant risk and liability by virtue 
of holding users funds becoming a Honeypot for   Hackers additionally by holding users funds 
developers take on the overhead of Regulatory   Compliance navigating stringent AML and kyc laws 
for each jurisdiction they might operate in these   Are pretty strenuous downsides for something as 
simple as building an app this is where green   Light shines it enables Developers to integrate 
lightning infrastructure seamlessly into their   Platform without having to deal with the overhead 
of node management while also ensuring the wallet   Or service stays non-custodial and users maintain 
total control over their private keys in Bitcoin   By being non-custodial developers strike down both 
the fiduciary liability of holding users funds   As well as the costs of regulatory and compliance 
requirements we'll have Christian Decker the lead   Greenlight engineer on in a bit to discuss more 
about the unique advant green light gives app   Developers and Bitcoin companies when creating 
a lightning business and finally a third option   When onboarding to lightning is to set up your 
own lightning node this is the best solution for   An individual when using lightning and will give 
you the most control however as mentioned earlier   There is a technical barrier with users having to 
learn both Channel and liquidity management this   Learning curve will take some time to master 
but there are plenty of educational resources   Online to help you tackle this now the now that 
we have a good grasp of lightning and its various   Onboarding Solutions and trade-offs let's learn 
more about block stream's Greenlight Greenlight   Is a non-custodial lightning as a service that 
marries convenience with self- custody it takes   The biggest barrier of entry for new users and 
headache for lightning apps Channel and liquidity   Management out of the equation making onboarding 
easy and safe it allows anyone to boot up their   Own personal lightning node on blockstream's 
on demand node infrastructure in seconds with  

A few AP I calls the private Keys is required to 
sign both onchain and offchain transactions never   Leave the user's device and never touch block 
stream's infrastructure ensuring self- custody   At all times to help us better understand 
how green lights infrastructure works and   How it helps lightning app scale let's call up 
Christian Decker Christian is a longtime Bitcoin   Core contributor and one of the architects of 
the lightning Network he's a core Tech engineer   At blog stream focusing on core lightning and 
green light he was also the first person to   Write their PHD thesis about Bitcoin so we like 
to call him Dr Bitcoin let's give Dr Bitcoin a Call hey Drew thanks for having me let's do 
a deep dive into what green light is who it   Is for and what its capabilities are green light 
reimagines the lightning node by splitting it into   A number of smaller components that are then run 
separately from the very start of the cln project   We took care to keep all the operations involved 
in Keys exclusively in the signer separate from   The rest of the node this allows us to run the 
signer on the user device while the remainder of   The node with all its operational needs runs 
on our infrastructure the signer is built on   The validating lightning signer project and we 
built an additional endtoend verification system   On top ensuring that only authorized clients can 
initiate operations touching the funds not the   Operator of the infrastructure or a potential 
attacker gaining access to the infrastructure   This provides us with a system similar to how 
Hardware wallets operate today the user has   A client interface and the signer while the 
wallet provider is running the actual Bitcoin   Nodes that connect to the rest of the network 
only the components controlled by the user can   Initiate payments sign invoices Etc while the 
resource consuming node is run as efficiently   As poss possibly by us this allows us to build 
green light as a hosted non-custodial lightning   Node as a service offering blockstream takes care 
of running the infrastructure including databases   With backups virtual machines and watchtowers 
while the user Still Remains in full and exclusive   Control of their funds today there are already 
quite a few applications that build on top of   Green light our very own green wallet and the Bree 
wallet have integrated with green light for their   Lightning support in addition Bree are building 
Breeze SDK which Builds on green light adding an   LSP integration swap serice services and Ln URL 
integration this means that an application built   On Breeze SDK and green light can immediately 
receive funds with channels being opened on demand   When needed and send onchain payments directly 
from their offchain balance thanks Dr Bitcoin for   A more technical explainer of green light let's 
have you back on the show soon what a great guy   So now that we have a greater understanding of 
the inner workings of Greenlight let's discuss   Some of the other unique value props of Greenlight 
this time from a bus business perspective here are   Seven Technical and business reasons to consider 
green light first it's self custodial users or   The organization controls their own keys and can 
leverage their existing security setup your funds  

Remain under your own control and the keys are 
managed on your device or infrastructure ensuring   That blockstream operations teams can never 
have access to your private Keys two you have   Access to Dedicated support almost all other 
services use a light lightning implementation   From another vendor with no service agreement 
or formal commitment for support green light   Is based on core lightning which is authored and 
maintained by our in-house team three scalability   Easily scale to as many users as your business 
demands four liquidity flexibility and choice   Greenlight allows Enterprises to bring their own 
lightning service providers and earn routing fees   For lightning payments from their user base other 
offerings plug in their own LSP and raken the fees   For themselves businesses also have the option 
of using any of our LSP partners for liquidity   And channel management five cost effective core 
Lightning's lightweight node implementation and   The ability to run nodes on demand means we can 
efficiently provision lightning nodes and pass   On the savings to you support for offboarding 
greenl is not a w Garden users or Enterprises   Can seem seamlessly offboard their green light 
node to their own self-hosted infrastructure   When they feel ready to and one of the biggest 
unique selling points of green light one node   Many apps today any non-custodial lightning 
Wallet app or tool requires a user to set   Up their own node in order to use it this leads 
to users having multiple wallets each for every   Non-custodial app or tool leading to multiple 
balances imagine having a different bank account   For every single service that you use Greenlight 
offers mobility of a user's lightning node across   Multiple applications and experiences users 
can use a single balance for every lightning   Wallet app or tool across all of their devices in 
a non-custodial way no more splitting funds across   Various apps or wallets trying out a new app and 
discarding those that no longer serve your need is   Now a seamless userfriendly experience now that 
we understand how green light works and some of   The perks of running lightning using Greenlight 
let's head over to blockstream Green which has now   Integrated non- custodia lightning wallet into its 
offering with the Greenlight service I'll first   Demo how to create a lightning wallet in green 
then I'll top up the wallet with SATs from the   Main chain and then I'll show the wallet in action 
by using it to zap a friend on Noster in order to   Set up our first lightning wallet on green we're 
first going to need to open up the green app from   Here I'm going to go into an old uh onchain 
Bitcoin wallet to Showcase that I can create   A lightning wallet Within an already created 
wallet so as you could see you could see some old   Transactions within this onchain Bitcoin wallet 
in order to make a lightning wallet I'm going to   Go to the settings and PR press create account and 
I'm going to press lightning from here it's just   Telling us that it's an experimental feature and 
I'm all right with that so I'm going to press okay   From here I'm going to just be waiting a couple 
seconds for green to create my new lightning uh   Account my new lightning account has been created 
and you can see that populate within green scen so  

From here I'm going to go to the account and I'm 
going to press receive I'm going to be sending   Onchain Bitcoin SATs to this wallet in the back 
end it will transfer these onchain SATs into   Lightning SATs so I'm going to copy that onchain 
address and from here I'm going to go over to   Strike and I'm going to send over all of the funds 
I have in my wallet here which is $10 I'm going to   Press send and I'm going to click Bitcoin wallet 
and I'm going to paste in my onchain ADD address   From here I'm going to be sending all $10 and 
because I'm in no rush I'm just going to do the no   Fee as we can see my account my lightning account 
now has the SATs that we were waiting to receive   So with that I'm going to send my good friend uh 
some lightning sets on Noster so I'm in order to   Do that I've searched his name and I'm going to go 
over to the zap function and I'm just going to say   Hi I'm going to send him a thousand SATs and I'm 
going to press zap user from there I'm going to   Copy the invoice and I'm then going to go back to 
green and I'm going to press send from there I'm   Going to input the uh lightning address into the 
invoice as you could see it brings up the Thousand   STS and I shows us the available balance we're 
able to send and everything works there so I'm   Going to send the SATs from here we're going to 
wait a couple seconds for green to do its work   Behind the scenes with green light and from there 
we should get a confirmed transaction sent and as   You could see the Thousand SATs have been sent 
from our wallet to our good friend on Noster so   Nice job that's it for today folks to recap this 
episode we first started with a brief explanation   Of what the lightning network is lightning acts 
as a second layer solution for Bitcoin lightning   Brings fast cheap transactions to the network 
which helps scale Bitcoin globally the Bitcoin   Main chain can be compared to to digital gold 
and serves as a foundational Reserve layer on   The other hand lightning functions as a payment 
layer catering to Everyday transactions we then   Dove into the various onboarding Solutions 
on lightning and their trade-offs for users   And developers and how this impacts scaling 
traditional custodial Services while convenient   Pose a risk as they withhold a user's private 
Keys alternatively non- custodia wallets offer   Increased autonomy and security but require 
lightning app developers and companies to   Become experts in Channel and node Management on 
an individual basis running one's own lightning   Node provides the greatest control and is the most 
ideal but it has a technical barrier due to the   Channel and liquidity management requirements 
previously mentioned green light strength lies   In dramatically simplifying lightning onboarding 
and node management while ensuring self- custody   It takes the biggest barrier of entry for 
new users and challenges for lightning app   Developers Channel and liquidity management 
out of the equation making onard boarding and   Scaling easy and safe finally we wrapped it all 
up by seeing the capabilities of green light in   Action by setting up our own lightning wallet 
using blog stream green and then we sent some   Lightning STS out of the wallet to zap a friend on 
Noster if you found this video helpful please give  

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for more user-friendly Bitcoin content if you   Have any questions or suggestions leave them in 
the comment section down below and we'll do our   Best to address them in future videos thanks again 
for taking the time to watch our tutorials we do   This for the community until next time continue 
stacking those SATs and as always don't trust [Music] [Music] Verify

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