Lightning nodes are integral components of the Lightning Network.
They serve as the backbone of the Lightning Network, enabling users to create payment channels, route transactions, and facilitate fast and efficient off-chain Bitcoin transactions.
They are devices that your lightning wallet connects to, and are responsible for initiating and receiving payments.
At its core, a Lightning node is a computer or device running specialised software that allows it to interact with the Lightning Network.
There are two main types of Lightning nodes: routing nodes and non-routing nodes.
Routing Nodes:
These nodes actively participate in routing payments through the Lightning Network. They maintain payment channels with other nodes, allowing them to forward transactions along the network’s paths. Routing nodes play a critical role in enabling multi-hop transactions, where payments traverse multiple channels to reach their destination.
Non-Routing Nodes:
These nodes primarily use the Lightning Network to send and receive payments, but they do not actively route transactions for other users. Non-routing nodes often serve as deviced that users connect their wallets to, allowing them to make Lightning transactions without the responsibilities associated with routing.
Setting up a Lightning node involves installing Lightning Network software and connecting to other nodes on the network. Nodes establish channels with one another by committing Bitcoin funds to these channels, creating the capacity to send and receive payments.
To send a Lightning payment, a node searches for a route through the network, and the payment is broken down into smaller segments that can traverse various channels. As these segments pass through routing nodes, they’re cryptographically secured and validated using Hash Time-Locked Contracts (HTLCs).
The Lightning Network’s success depends on a well-distributed network of nodes, offering ample route options for transactions to flow smoothly. Users can choose to operate routing nodes, providing liquidity to the network in exchange for routing fees. On the other hand, non-routing nodes focus on personal Lightning transactions.
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