Stacking Sats On The Lightning Network

in LeoFinance2 months ago

When I first got into buying Bitcoin, I naturally also looked into ways of earning Bitcoin, and one of the first ways was through these sites called faucets. These sites pay you a small amount of Bitcoin or an altcoin to complete microtasks on their sites.

These sites were a great introduction and a low-risk way to get into Bitcoin, see how it works, accept payments, set up wallets and all that good stuff you need to learn once you get started.

I've seen quite a faucets come and go, since it's not always a profitable exercise and sites need to manage their ad revenue with their incentives to keep people coming back and growing the site.

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More fees less worth it

In the beginning, facets were great because you could get a lot of stake for a few dollars, so you could earn hundreds of thousands of sats and keep most of them for yourself as mining fees were still pretty low. As Bitcoin continues to grow in acceptance and price, it sure doesn't make much sense to be doing 1,2,5, $10 transactions on-chain.

You're just getting to keep less and less for your efforts and faucets become a bit of a waste of time. After realising this, I pretty much gave up on the idea of stacking sats, via faucets and microtasks.

Staking sats on the light

I've recently started using the lightning network again and checked out some of the dapps built using LN and came across a site aggregator called Lapps. Lapps allows anyone to list their dapp should it have LN features or use LN as the base for transfer of funds.

The Lightning network is pretty easy to use, all you need is an LN enabled wallet, you can find one here there are both custodial and non-custodial options available so pick your poison.

I've been using the custodial "wallet of satoshi", I don't recommend it because I always say have your keys to your crypto but this was just to test out the concept of stacking sats.

Sending transactions across the lighting network is super quick, easy and cheap as chips, as the transaction fees are in the milli-satoshi level. Meaning you can actually transfer as little as 1 Sat.

I started messing around with dapps on lapps and earning a few satoshis and sent them to my wallet immediately, they clear within a second and it's pretty awesome to be able to stack sats and keep most of what I earned.

I've managed to sack around 0.003 Sats with the Lightning Network and I am really enjoying using the service.

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LN transactions in Wallet of Satoshi

I like where this is going

As the main-chain focuses on the inflation-proof store of value, the mesh network that is this side chain is starting to show real promise, yes there are trade-offs in security for the speed you get but I think that you should always have some "liquid/lightning" Bitcoin ready for a quick transaction.

If more dapps, wallets and exchanges adopt the lightning network, it will make so many of the transaction issues easier and allow the smaller guy to get in and move his $5 around without a worry.

Being able to earn and collect and spend Bitcoin this quickly and cheaply means it opens up opportunities for things like freelancing tasks, rewards, giveaways, bounties, eCommerce and so much more.

In many cases, it could mean you don't need to use an altcoin for example, why would I need lite coin now? I only used it because it was cheaper to transfer to exchanges but with LN, I don't need to lose money on swapping between BTC and LTC to save on transactions.

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What do you good people of HIVE think?

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These are some awesome points dude, thanks. I’m not minding the faucets but as the prices rise, it’s definitely less viable for them to withdraw so they just jack it up. I’ll give the lightning thing a try!

Do you need to download an app to use it? I don’t download apps that aren’t on the iOS store and a lot of these crypto ones aren’t. Just need to be cautious. If I could just do it in the brave browser like the faucets that would be sweet.

I saw those delicious donuts the other day and raise you a sandwich! How were the donuts? I don’t like Krispy Kreme personally but that’s just me.

This lively slaughtered animal is called a super beef three-way. Say that with the Boston accent, it’s marvelous. Roast beef, cheese, barbecue sauce mayonnaise on a sesame seed bulky roll. One of my favs!

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Wallet of Satoshi that I use which is custodial is on iOS but there are apps that aren't custodial like Zap which you can use, the earning apps are all browser based, just the wallets are app based.

To be honest it was okay, a Bit overly sweet for my liking, would I be having KK again soon, probably not.

whole lee hell that looks good, how much do one of those bad boys set you back?

Nice thanks I'll check out Zap to see what it's like. It's better than the crazy fees that the faucets charge lol

The Supa beef is about 8$ at most places, totally worth every penny lol

Considering it’s 3 times the price of a McDonald’s burger here I have to assume it’s 3x as good!

I do have a dream of getting to visit the US just to pig out while I’m there and go home with diabetes and loving it! So here’s to hoping Biden prints your currency into oblivion so mine can be used to get over there for holiday lol

Freebitcoin and freedogecojn was the sute introduce me the world of crypto... I was able to withdraw the Dige coin but nit the satoshj because of the min threshold....
The networks with low fee is excellent...

I really liked freedogcoin and freebitoin they are by far the best faucets, I earned some doge coin there too, I think I have like 20k doge lol. I still have BTC in freebitcoin earning interest didn't see the point in taking it out yet, but it has been a tool I used to get some of my first "earned" Bitcoin

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I guess it is not about the fees but more about the automated bots that drain the faucets and profitability of running faucets is greatly reduced.

LN is welcome development, hearing about it for long but did not see/heard people advocating it for big transactions.

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Ah yes, I would imagine that people will try to game faucets and extract all the money teh can the moment you put up cash people will try to cheat you out of it, I wonder how often faucets get attacked

It hasn't been the greatest launch or cohesive marketing exposure yet since BTC is still and should be the core focus but as BTC matures and brings in more value these tools like LN make more sense to keep improving I think its just a sign of where we are right now

I did not know much about the lightning network until I read a snippet of a recently published book by Nic Bhatia. He talked about the importance of LN and how that could possibly help the evolution of BTC as a payment system. I should definitely try to understand more about this.

I was legit listing to a podcast with Nic today, what are the odds? just like most people can't see the benefit of Bitcoin I say its eve more so for the lightning network, I don't think it will also be the only scaling solution and there will be others in the future, but I do like where this project is going.

Any way I get to keep more sats and not pay miners is alright with me

Is that with Peter? I need to know more. Keeping sats is my goal for 2021 😀

That's a pretty cool development with lightning network. I'm going to wait until it becomes more developed first as I'm not in a rush to move small amount of satoshi around but one to keep an eye on for sure. That will render a lot of alt coins obsolete I'd imagine!

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yeah it's still very clunky and very much a baby and not many wallets have it integrated just yet, I am sure it is coming because I see a lot of work being done by lightning labs.

Their DE-FI protocol rolled out now to provide liquidity to the lightning network and earn fees is out, but doesn't have a UI yet.

I've been thinking of getting myself a lightning node and setting it up as a payment channel and earn some sats that way too.

I would agree with Lightning and RGB Bitcoin smart contracts a lot of alt coins will die, only leading edge ones pushing the limit will continue and I don;t see that as a bad thing

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It's only a matter of time - in 12-24 months, the landscape will be totally different and if PayPal and other big institutions are lining it up for payments, they'll be wanting to look at LN as well I'd imagine.

I might spare a bit of BTC to provide liquidity once things stabalise as that could be another avenue for stacking the sats!

Wonder which ones will make it but like you said in the OP, Litecoin seems like it would be made redundant once LN is fully fledged

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I really can't wait for these things to mature its going to be awesome to be able to instead of having all these apps, create an X-PUB address in my ledger for all my DE-Fi shit, provide liquidity let's say on Lightning or ETH and see the sats roll in with super low fees and we just keep that profit machine churning

I also think LN will make things like Lolli more viable, like cashback rewards when you spend, get back sats in your wallet. I know Bitfinex is also LN enabled already its coming slowly

Now you're talking! I'm going to be waiting out for that functionality in the ledger! Satback rewards sound epic!

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