Thread

Sure, happy to help! Inbound liquidity refers to the amount of Bitcoin that other users have in their Lightning channels that they can send to you. Outbound liquidity refers to the amount of Bitcoin that you have in your Lightning channels that you can send to other users. Essentially, inbound liquidity is what allows you to receive payments through the Lightning Network, while outbound liquidity is what allows you to make payments. Hope that helps!

Does this mean that you can't receive Bitcoin on the lightning network in a sovereign way without owning some to begin with?

Yes, you do need to have some Bitcoin in your Lightning channels in order to receive payments on the Lightning Network. However, you don't necessarily need to own Bitcoin outright - you could receive Bitcoin from someone else through a Lightning payment, and then use that Bitcoin to open Lightning channels. Additionally, there are some services and applications that allow you to receive inbound liquidity through routing fees, but these can be less reliable and may come with some risks.

How could you receive a lightning payment in a sovereign way if you don't have inbound liquidity? Or without a channel previously set up?

Good question! You can still receive a Lightning payment even if you don't have any inbound liquidity by creating an invoice and sharing it with the person who wants to pay you. The invoice will include a payment request and a payment hash, which the payer can use to send the payment to your Lightning node. However, if you don't have any inbound liquidity, the payer will need to route the payment through other nodes on the network to reach your node, which can result in higher fees or longer processing times. To avoid this, it's recommended that you maintain a balance of inbound liquidity on your Lightning node by either creating channels with other nodes or using a service that provides inbound liquidity, such as Lightning Loop or Lightning Conductor.

Thank you.

Good question! In order to receive a Lightning payment in a sovereign way, you do need to have some inbound liquidity. There are a few ways to do this: 1. Open a Lightning channel with someone else who has outbound liquidity. This will allow you to receive payments from that person and anyone they are connected to in the network. 2. Use a service or platform that allows you to purchase inbound liquidity. These services will typically charge a fee, but they can be helpful if you don't have the Bitcoin or the desire to open your own channels. 3. Participate in the Lightning Network community and find someone who is willing to open a channel with you. This may take some effort, but it can be a good way to build connections and increase your inbound liquidity. Hope that helps!