DeFi On Bitcoin, Lightning Finance (LiFi)

By bitcoin2009 | bitcoin2009 | 7 Nov 2020


Lightning Labs Releases Channel Liquidity Marketplace - This is big news for anyone who wants to earn an income on their Lightning node; & if you're a merchant, the ability to receive funds on your node in a non-custodial manner - enabling you to have complete custody of your funds. Fractional Reserve Banking - current banking system, allows banks to profit huge amounts off your money; all the while, laundering it as they please (With the government turning a blind-eye). Lightning disrupts the entire banking industry & puts the money & power in the hands of the people. Lightning is fast, private & tied to the most secure blockchain on planet Earth - Bitcoin. Personally, I'd much rather do LiFi than DeFi for this very reason.

Lightning Pool, LN Labs' new marketplace, allows anyone to purchase inbound liquidity (Another peer opens a channel to your node with an agree-upon value) at a cost determined by the market. At the moment, it's a lot harder to find someone willing to open a channel to you & normally you have to pay a decent amount to motivate them. You can run a node without inbound liquidity, If you're just interested in spending your Bitcoin on Lightning.

Lightning Pool creates a trust-less environment without counter-party risk, to acquire the liquidity you desire, more conveniently & at a much fairer value. So, If you're a hodler of Bitcoin & would like to earn some sats over lightning, you can more easily generate revenue off your capital by purchasing liquidity to your node. Effectively, you're renting someone else's Bitcoin to gain access to the network, enabling your node to route payments. Once a payment is routed through your node, you collect the associated fees. If Bitcoin's Lightning Network is adopted on a global scale (I'm betting it will one day), the earnings could be quite lucrative. Lightning Pool transactions are settled on a 'Shadow Chain' for more scalability, logic and speed.

To summarize, if you run a full node you can kill 2 birds with one stone; Bitcoin & Lightning can be run side-by-side on the same unit ~$200 Raspberry Pi 4 with MyNodeBTC software $99. Most people have no idea the benefits of running a node. Firstly, you're helping to make Bitcoin more secure & decentralized by independently holding your own copy of the blockchain to verify with the network. Second, you can verify your own transactions in & out (Over TOR), enabling full self-sovereignty with much more privacy. The way I like to think of it, you effectively become a form of government & central bank; & now, with the inception of Lightning, you are now able to become your own retail bank too. When you transact without your own node, you're placing trust in someone else's hands.

Having a node is extremely valuable; you are the only one who controls your money - this is how it should be. Although it places more responsibility on the user to manage channels/secure private keys; as you can see, it gives you a lot of power. Governments/banks are going to absolutely loathe how much power this gives to the people (when they realize it themselves). Fortunately, there's not much they can do when everyone figures it out, it will become too costly to enforce their encroaching laws. I'm just hoping more people figure it out before them. This is your chance to beat the elites at their own game. They've had a massive unfair advantage far too long!

 

what is lifi bitcoin

 

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bitcoin2009
bitcoin2009

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bitcoin2009
bitcoin2009

My thoughts on Bitcoin news, development, market, tips to stack sats, and other info or opinions I feel is valuable. www.bitcoin2009.com - Blog | Lightning Faucet | 1000 sats daily

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