How to Run a Bitcoin Lightning Node in 5 Minutes?

On June 14, 2021, the Lightning network reached a milestone of 1,500 Bitcoins, worth more than $60 million. There are already over 12,000 active nodes on the network, with 50,300 channels connecting them all. Moreover, this year has seen a surge in the growth of the Bitcoin Lightning Node, which promises to make Bitcoin a more efficient payment network. In this article, we’re going to get a complete understanding of how to run a Lightning Network Node.

What is a Node?

Node is a computer that connects to a cryptocurrency network. Every node is connected to the blockchain, and they are continuously updating each other with the most recent information uploaded to the blockchain.

What are Functions?

  • Functions provide additional validation for the ledger and allow anybody to observe transactions on the network in real-time.
  • They guarantee the data on the blockchain is legitimate, safe, and accessible to authorized parties.

Types of Nodes

  • Full Node: These types of nodes have a single copy of the whole blockchain history, including all transactions, timestamps, and blocks produced.
  • Light Node: These types of nodes do not download the blockchain entirely. Instead, it merely downloads the block headers to confirm the validity of the transactions.
Types of Nodes
Types of Nodes

Bitcoin Lightning Network

History

Joseph Poon and Thaddeus Dryja suggested the lightning network in 2015. The lighting network was intended to address the issue of bitcoin’s slow transaction time and throughput.

Definition

It is a layer of connections on top of the blockchain to significantly enhance its speed. Furthermore, you can learn about the Bitcoin Lightning Network from our article by clicking here.

Advantages

  • Lightning Network allows for instant payments without the need for network confirmations.
  • It enables transfers as tiny as a fraction of a penny with practically no costs.
  • Furthermore, it can also handle millions of transactions per second and surpass existing payment systems without the middleman.

Bitcoin Lightning Network Node

Definition

It acts as our entrance into the Lightning Network ecosystem. To perform anything on the lightning network, we must have our own running node. In addition, it will allow us to make rapid, inexpensive, and private payments on top of a blockchain.

Features

  • It monitors the underlying blockchain on which tokens are stored. If the Lightning Network node fails to accomplish this correctly, we risk having our money stolen.
  • A Lightning Network node also communicates with other peer-to-peer network nodes which are blockchain’s peer-to-peer network and lightning’s peer-to-peer network.
  • Also, it is the job of a Lightning Network node to trade money with other Lightning nodes.

The lightning peer-to-peer network is where money on the Lightning network is exchanged. (just like Bitcoin’s P2P network)

Bitcoin Node V/s Lightning Network Node

Every transaction on the bitcoin network must be verified by a bitcoin node. Likewise, a Lightning Network node must validate transactions with the node with which it is directly communicating.

Setting up a Bitcoin Lightning Network Node

Case 1

If we want to run our node on a computer, we can simply download Bitcoin Core for Windows, Mac, or Linux.

Case 2

If we want to run our node on a separate piece of hardware that we can leave running all day, and also it will not take up a lot of space on our computer; we can use a Raspberry Pi.

Running Node on Raspberry Pi V/s Running Node on Computer

Both are the same. The main difference is that we require special software to adjust for hardware variations. We may either write this software ourselves or utilize one of the pi-focused bitcoin node software clients that provide their own Bitcoin Core implementations.

Examples of Raspberry Pi nodes

  • myNode: It promises to make it easier to run a dedicated Bitcoin node and Lightning wallet. Their system combines the greatest open source software with our browser-based interface for accessing all of the apps, allowing us to utilize Bitcoin and Lightning safely and securely.
myNode Services
myNode Services
  • RaspiBlitz: It is a Lightning Node based on LND that runs alongside a Bitcoin-Full node on a RaspberryPi 4  which is  complete with an SSD and a nice touchscreen for easy setup and monitoring.
RaspberryPi 4
RaspberryPi 4
  • Umbrel: It offers a limited, controlled environment that is much easier to set up for a novice user.
Umbrel
Umbrel