Tim Bouma
· 38w
Can someone explain to me exactly what is non-custodial Lightning?
#asknostr
In custodial lightning one trusts a service provider with ones bitcoin.
In non-custodial lightning one runs a bitcoin node and locks bitcoin in an online hot wallet with a set of multisig smart contract channels with strangers.
In the former you risk being rugged.
In the latter you have built a giant fortress of footguns that must be carefully maintained.
There's a lot more than just those things that make them different, but...