An Overview of Self-Custodial Lightning Wallets

Introduction

A lightning wallet is the primary interface that users have with the Lightning Network. It is one of the most vital components of the ecosystem.

Since the network’s inception, wallets have come a long, long way in terms of usability. That Lightning cannot be used self-custodially without running a node on a separate device is now a myth reserved for those who have never given some of the wallets in this list a try.

We have recently seen some major developments in the ecosystem with Phoenix making things very interesting with the implementation of splicing into their wallet, Zeus coming out with an upcoming release that runs an embedded node on people’s phones, emergence of tools like Breez SDK, LDK and Blockstream’s greenlight node infrastructure that make it much easier for developers to build on the Lightning Network.

Features like just-in-time channel creation, seed phrase backups, zero sat invoices, LNURL, LN Addresses, Lightning Service Providers, etc. paint an encouraging picture of the ecosystem’s current state and its future.

In this article, we have selected some self-custodial Lightning Wallets that we believe are worth checking out.

We want to add an important caveat that each of these wallets have made different tradeoffs which have certain risks and benefits associated with them. It’s also important to note that some of these wallets are still in development/beta, with new features that will be added in the coming months. We have specified if a wallet is in beta. This article will be regularly updated to remain relevant.

With that said, let’s take a look at the different Lightning wallets in the ecosystem and examine each of their models.

1. Breez

Website: https://breez.technology/

Twitter: https://twitter.com/breez_tech

Github Repository: https://github.com/breez/breezmobile

Breez is a self-custodial lightning wallet built on Blockstream’s greenlight node infrastructure. They operate their own Lightning Service Provider, which enables them to create channels as you receive funds, with a certain amount of predetermined channel-opening fee.

They don’t have seed-phrase backups, but give you the ability to store an encrypted backup of your wallet on a cloud server.

Breez also has a developers’ section that offers you extra functionalities like remotely managing the node that your wallet is connected to, check channel balances, manually connect to peers, etc. We recommend you to learn how to use this, as it can help you to leverage the self-custodial capabilities of your wallet.

2. Phoenix

Website: https://phoenix.acinq.co/

Twitter: https://twitter.com/PhoenixWallet

Github Repository: https://github.com/ACINQ/phoenix

Phoenix is a self-custodial lightning wallet whose team has also developed a separate implementation of the Lightning Network. Whereas other wallets are built on top of existing implementations like LND, Core-lightning or LDK, Phoenix runs on an implementation called Eclair, which was developed by the Phoenix’s parent company, Acinq.

The wallet lets you take seed phrase backups, view your channel balance, node ID and take a seed phrase backup of your wallet. Your wallet will be connected to a separate node which will open channels with Phoenix’s own node. You can receive funds without having inbound liquidity as Phoenix takes care of the channel creation and management under the hood. This means you’ll be charged a certain fee for the first time you receive sats to your wallet.

The downside of using Phoenix is that you can’t manually open, close and manage channels or connect to a node of your choosing.

3. Mutiny

Website: https://www.mutinywallet.com

Twitter: https://twitter.com/MutinyWallet

Github Repository: https://github.com/MutinyWallet/

Mutiny is a self-custodial wallet that is built as a Progressive Web App, which runs a node on your mobile browser. What’s different about Mutiny from other options on this list is the fact that you don’t need a mobile app to use it.

The wallet lets you take a seed phrase backup of your funds, choose a custom server for backups and even choose an LSP of your choice to obtain inbound liquidity for receiving funds. You can also connect to custom peers and manage channels within the wallet’s web app.

Although Mutiny was recently made available for public use and is still in development.

4. Blixt

Website: https://blixtwallet.github.io/
Twitter: https://blixtwallet.github.io/

Github Repository: https://github.com/hsjoberg/blixt-wallet

Blixt is a self-custodial lightning wallet that runs a node on your phone.

Since running a full node requires storage requirements, the wallet runs an SPV node, which stores only the key components of the Bitcoin blockchain required to verify transactions stored in it. It runs an LND node as well to enable users to use the lightning network.

It supports the usual self-custodial features like seed phrase backups, just-in-time channel creation and manual channel management. The wallet also lets you take a backup of your lightning wallet on your own device by creating an encrypted file.

Alternatively you can also use Blixt to connect to your own node and manage channels that way.

Blixt is also still in development but is available for public use.

5. Zeus

Website: https://zeusln.app/

Twitter: https://twitter.com/ZeusLN

Github Repository: https://github.com/ZeusLN/zeus

Similar to Blixt, Zeus is a self-custodial Lightning wallet that runs an embedded Lightning node on your phone and has its own Lightning Service Provider that you can open channels with. It also lets you connect to a custom LSP if you’d like to.

In addition to that, the wallet also supports seed phrase backups and just-in-time channel creation.

However, the version that runs an embedded node and allows people to connect to Zeus’ own LSP is still in Alpha and is not publicly available. But it is quite promising.

You can either connect your own node and manage channels using the wallet, or alternatively, you can connect your wallet to another custodial solution like Alby and just use Zeus to send and receive payments.

6. Electrum

Website: https://electrum.org/

Twitter: https://twitter.com/ElectrumWallet

Github: https://github.com/spesmilo/electrum

Electrum is a wallet with a separate Lightning implementation of its own, similar to Phoenix.

Its UI can seem outdated by the looks of it, but is quite functional and optimised to make sure it just works for people. It is especially suited for people who have a good idea about how the lightning network works as users have a lot of control in how their funds are stored.

Looking Ahead

People underestimate how far LN has come in the last few years. Here are some other cool things happening on the network.

Creating your own wallet with basic functionality would take months but it takes weeks because of open source tooling like LDK, Breez SDK and Blockstream’s Greenlight.
You can now add and remove funds from an existing channel thanks to splicing. You’ll soon be able to hide a Lightning transaction on-chain when taproot channels are available.
A spec is being developed for Lightning Service Providers, which would make it super easy for people to switch between services that provide inbound liquidity straight to their wallet
Lightning will soon be used to pay for compute with L402
More and more wallets are running embedded nodes on phones with developments in SPV and neutrino clients.
You can remotely manage your own lightning node reliably and seamlessly with Lightning Node Connect.

What’s more, we have some exciting new developments like Bolt12, PTLCs, dual funding and taproot channels coming soon to the Lightning network to make wallets offer better experiences and privacy to users.

Follow this space to remain updated about them!

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