πŸ”Hybrid Custody & Security

Background

LN Exchange facilitates settlements using the Lightning Network for its rapidity and minimal fees. However, the Lightning Network has a significant drawback: it necessitates the opening of a Lightning channel by two nodes before funds can be transferred between them.

The setup and management of a Lightning node are arduous, prompting many retailers to opt for custodial solutions instead.

To tackle this challenge, LN Exchange introduces a hybrid custody framework:

⚑Managed Custody

LN Exchange's current Managed Custody service, where users' funds are securely stored on LN Exchange's Lightning node, will continue. In the future, this service will support Pocket Universe, a system that requires both the node operator and the user to approve any fund movement requests, thereby enhancing security measures.

⚑Self-Custody

Cloud Nodes

LN Exchange and Lnfi Network have partnered with Voltage to offer a user-friendly cloud-based solution for establishing and managing Lightning nodes. Further details will be disclosed upon its release.

Hardware Devices

[TBD]

Both solutions empower users to engage with LN Exchange while maintaining self-custody.

⚑TAHUB

TAHUB is a lightning node management solution based on the Nostr protocol, designed to abstract away the complexities associated with nodes and hardware devices.

Users on TAHub will be able to manage their own nodes through natural language commands (similar to sending text messages) or a web interface, enabling self-hosting and interaction with LN Exchange.

They can also access node and account records through TAHub, ensuring complete transparency.

Our hybrid custody model aims to decentralize and expand the Lightning Network's capabilities, further driving its adoption.

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