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Tim Bouma · 38w
Can someone explain to me exactly what is non-custodial Lightning? #asknostr
M0053 profile picture
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...
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Tim Bouma · 38w
Yeah, I do the latter to provide a service to the former. I just don’t see how a casual user can be non-custodial.