How to Build on Lightning Network

The Bitcoin Lightning Network is offering an opportunity for a new generation of tech for builders. Bitcoin was the innovation that unlocked true internet money. Lightning is the technology that is unlocking the application layer for Bitcoin. 

The Lightning Network enables instant, scalable transactions with Bitcoin. Small or large. Lightning is still dependent on the fundamental properties of the Bitcoin blockchain. On-chain transactions are needed for Lightning Network nodes to open and manage channels between each other for bidirectional payments. Transactions can be routed across multiple nodes to an end destination. Upgrades such as Taproot Assets enable the creation and transacting of other assets on the Lightning Network. But in the end, all transactions can periodically settle on the Bitcoin blockchain. This is subtle but important to for aspiring Lightning builders:

Lightning gives you the security, longevity, and network effects of the Bitcoin blockchain, while also being able to build fast, scalable, and innovative applications using Bitcoin.

Why Build on the Lightning Network

Here’s a great talk from Bitcoin 2023 on Building Lightning Apps:

Alex Bosworth, Head of Lightning Liquidity at Lightning Labs, summarizes a way of thinking about applications on Lightning: there are many apps on other blockchains and networks that operate in some kind of decentralized manner, accessible to anyone in the world. But, these applications usually require using a coin that is issued for the specific purpose of that particular application. With Lightning apps, you can simply use Bitcoin.

Many developers don’t want to deal with the regulatory and financial complexities of issuing crypto assets in order to build decentralized apps. That being said, you can still build stablecoins, non-fungible tokens (NFTs) and other crypto assets on Lightning, thanks to Taproot Assets.

Use-cases for Lightning Network Apps

• Micropayments for APIs using Bitcoin

• ‘Streaming’ payments in real-time using Bitcoin

• Accept/send global payments to the Bitcoin and Lightning ecosystem (available to over 300 million users)

• Building DeFi applications on Lightning

• Building stablecoin, NFTs, or other crypto asset applications on Lightning with Taproot Assets

How to start building apps on Lightning Network

To get started on the Lightning Network, you need to set up a node, add liquidity (bitcoin), and open channels to other nodes in the network. This is the foundation of Lightning Network infrastructure, in order to transact on the network. 

This may be daunting to some developers, who want to focus on their specific application. Lightning Network Service Providers, such as Neutronpay, provide the infrastructure and liquidity to participate in the Lightning Network while builders can focus on their users. 

Builders can think of their applications as an electric vehicle, Lightning as the superhighway, and Neutronpay as the charging station and on-ramp to the network. Supercharge your Lightning Network app with Neutronpay:

Best regards,