How is crediting done in Lightning?
Bitcoin payments via the Lightning network enable fast, cost-effective and secure payment processing and are therefore ideally suited for crediting customer sales directly to the merchant.
As a Lightning payment provider, Coinsnap focuses on payment processing via Lightning and accordingly offers the forwarding of customer sales in the form of Lightning as a standardized version.
The customer’s Bitcoin or Lightning payment is forwarded to the merchant’s Lightning wallet as Lightning.
The standard method is a Lightning forwarding to a Lightning Wallet with a Lightning address.
To which Lightning Wallet the forwarding should be made, the merchant can freely choose from the solutions offered on the market. We provide an overview of Lightning Wallets with a Lightning address in a separate article.
Sats credited to the Lightning wallet are immediately available to the merchant.
Bitcoin over the Lightning network is ideal for payment processing and it makes sense for merchants to use Lightning funds to pay suppliers and employees via Lightning.
Most Lightning wallets with a Lightning address are third-party managed (custodial) Lightning wallets. This means that the wallet balance is held by the provider of the Lightning wallet and not by you.
Accordingly, you should only leave your Bitcoin balance on the Lightning Wallet for a short time and in a small amount.
When choosing a Lightning Wallet, one can opt for a self-managed (self-custody) Lightning Wallet with a Lightning address. So far, only Zeus is available as a provider of a Self-Custody Lightning Wallet with a Lightning address, but it is expected that more Self-Custody Lightning Wallet providers will offer a Lightning address.
If you want to store your Lightning assets for a long time, we recommend storing them on your own Bitcoin hardware wallet. The provider Bitbox has already announced a Lightning integration.
When using a pure Bitcoin hardware wallet without Lightning integration, a switch from Lightning to Bitcoin must be made.
The swap from Lightning to Bitcoin can be performed at the provider Boltz.Exchange. We have described exactly how this swap works in the article Payout in Bitcoin.