STAGE 4 · GO DEEPLEVEL · Intermediate7 LESSONSABOUT 36 MINLIGHTNING & LAYERS
The Bitcoin base layer is slow and deliberately limited, so faster systems are built on top of it and settle to it. Seven lessons on how those layers work, starting with Lightning. About 40 minutes.
BY THE END OF THIS COURSE YOU WILL BE ABLE TO
- Explain why the base layer is slow on purpose
- Describe a channel open, update and close
- Make and receive a Lightning payment, custodial or not
- Say what inbound liquidity is and why you need it
- Compare Liquid, Fedimint, Cashu and custodial layers by their trust
Every lesson ends with a quiz or a challenge; the course is complete when each lesson is.
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LESSONS
01Why layers?Every node checks every transaction, so the base layer is capped. Layers move everyday payments off-chain and settle on it when needed.▶ 1✓ quiz4 MIN✓02How Lightning worksTwo parties lock bitcoin in a shared output and update who owns what by signing new balances. Payments hop across channels using HTLCs, so no hop can steal.▶ 1✓ quiz6 MIN✓03Using Lightning as a personCustodial Lightning wallets are instant and trusting; self-custodial ones give you keys and channels. Keep spending money on Lightning, savings on-chain.▶ 1✓ quiz5 MIN✓04Liquidity: the thing nobody explainsA channel's capacity is shared between the two sides. You can only receive what is on the other side. New users must get inbound liquidity to be paid.✓ quiz⚡ challenge5 MIN✓05Privacy and honest limitsLightning payments are off the public ledger and onion-routed, which beats on-chain. Channels are still public, and custodial wallets see everything.✓ quiz5 MIN✓06Liquid, Fedimint, Cashu and custodiansBeyond Lightning: Liquid is a federated sidechain, Fedimint a community-run e-cash federation, Cashu single-mint e-cash. Each trades trust for privacy and ease.✓ quiz6 MIN✓07Should you run a Lightning node?Running a Lightning node teaches you the system and serves your own payments. As a business it rarely pays. Most people should use a good wallet instead.▶ 1✓ quiz5 MIN✓