How to create Lightning Network node

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How to create Lightning Network node

The view that Lightning network (LN) is an alternative to mining or bitcoin masternode wrong. Lightning – fast network is only the superstructure over the main bloccano, urged to exempt bitcoin from overloads needs of the unit. Similarity hashing is still there, in LN there are also computers that process the transaction, charging for a Commission. How to create Lightning Network node, and can it earn bitcoin, learn from this material.

How to make money on Lightning Network

The operators LN can set the size of the Commission, and the users choose the route their transactions through a variety of ways and fees that are profitable. Most units charge a single Satoshi per transaction, and this means that to get relatively small amounts would be in millions of transactions. Those who are trying to capitalize on the Lightning Network, will be disappointed – in August 2018 employs more than 3000 nodes with minimum commissions, and the number of channels has increased to 11,000. The monthly volume of transactions is around 100 BTC.

It is obvious that there is a greater number of altruists working for the good of bitcoin. They don’t give commissions to grow and compromise the zipper. It turns out that the profitability of the GBR Lightning Network is negligible and will grow only in two cases:

When the demand exceeds the volume of transactions, which handle nodes with minimum commissions. Then users will get more greedy channels and will be forced to pay more. When the turnover of BTC in LN will increase due to the stability and attractiveness of the network.

We can not exclude the option in which the profitability of the GBR Lightning Network and will not grow. Still, the add-in should solve the problem of scalability and high commissions, and not Vice versa. Despite the lack of earnings Lightning Network, the instructions for setting up nodes can be useful at least for people who want to contribute to the development of bitcoin.

Run Lightning Network – step by step instructions

This manual is designed for the installation of lightning node in mainnet bitcoin for Windows. There are various client implementations of lightning. The most successful is the software from Acinq called Eclair.

?clair needed:

  • A computer that has sufficient hard disk to store the full blockchain of bitcoin. Now its size – 210 Gb.
  • The amount of BTC that should be spent on the opening of the channel (about $5).

Move to action:

1. Download eclair.

2. Make sure that the base node Bitcoin meets the following specifications:

  • It needs to be version 0.16 or higher. The current version is 0.16.1. Download the latest version if necessary.
  • It needs to contain a full copy of the blockchain the bitcoin.
  • Edit the file bitcoin.conf that will need to be created, if it does not.

3. Go to: C: > Users > Username> AppData > Roaming > Bitcoin

If you cannot find the AppData folder, you must enable show hidden files. The easiest way to do this by typing at the command prompt, the following command sequence:

4. In the Bitcoin folder create a new text document called “bitcoin.txt”. Edit the properties file and rename the extension “.txt” in “.conf”. Now open the bitcoin.conf in Notepad and add the following:

5. Save the updated file bitcoin.conf. Now restart Bitcoin Core to make the changes take effect. When you next start the program will index the whole chain. It can take up to several days depending on the speed of your computer.

6. While there is synchronization, edit the configuration ?clair. To do this, create a file named “eclair.conf” in the folder C: Users Username .eclair:

Add in eclair.conf the following:

Install the “yourusername” and “yourpassword” in accordance with the user name and password specified in bitcoin.conf. You can give your host LN any name by selecting the alias eclair.node.

7. After the base node Bitcoin will be indexed and synced, launch eclair with a Bitcoin node running in the background. If you receive an error message from eclair that failed to find a full Bitcoin node, setting was not performed correctly. Go to step 2 again.

How to use Lightning Network

To set your first payment channel LN, will need to Fund your Bitcoin Core wallet. Eclair will use any means that he finds in the wallet. Satoshi returned from the closure of the channel is also sent back to the wallet.

1. Send a little Satoshi on the Bitcoin Core wallet. Because eclair is still in beta testing, any means used for opening the payment channel LN, can be lost forever. Use the amount that you can lose without regret. Some sites require the payment channels were above a certain value to connect to them, so it is recommended that no less than 60,000 Satoshi.

2. Once the wallet is funded to begin, open a channel to eclair by clicking the “Chanels – Open Chanel.”

3. You will need to find the URI of the target node on the page lnmainnet.gaben.win

Click on the node and the URI will appear in the lower left corner.

4. You can choose how much Satoshi will Fund the channel. Fee for Commission is a fee, which will be sent to the transaction. The amount of push is not required. Double check everything and then click “Connect”. The channel status will be updated.

5. As soon as the transaction is confirmed in the Bitcoin network, the payment channel LN, will be launched.

Now fully runs your node and the channel of the Lightning Network.

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