Bitcoin Lightning Network payment provider Amboss Technologies has launched “Ghost Addresses,” a new type of Lightning Address that allows users to receive payments directly into their own custody, bypassing the need for custodial wallets.
Amboss Technologies has introduced Ghost Addresses as a solution to the reliance on centralized custodial Lightning wallet providers. With Ghost Addresses, users can receive payments directly into their self-custody wallets using an email-like format. This eliminates the risk of funds being held by third parties.
What are Ghost Addresses?
Ghost Addresses combine the convenience of existing Lightning Address formats with advanced features of the Lightning Network, enhancing security and privacy without requiring additional infrastructure. Users can receive funds directly to their own self-custodial Lightning node via a personalized Ghost Address.
The destination in Ghost Address invoices is a Phantom node, which doesn’t actually exist. Instead, each invoice generated includes users’ nodes in the route hints provided by the Amboss API. Payments to a Ghost Address reveal the amount of a theoretical payment but do not provide proof of completed payments.
Existing alternatives
Prior to Ghost Addresses, users could create their own Lightning Address server or use third-party solutions like Voltage or Zeus. However, these options come with complexities and potential risks. Voltage uses an invoice macaroon from the user, while Zeus offers a HODL invoice solution that can lead to expensive force closes on payment channels.
The risk of centralized Lightning Network custody
Relying on custodial wallet providers for Lightning Addresses exposes users to regulatory risks and potential shutdowns. Wallet of Satoshi recently removed itself from U.S. app stores due to regulatory demands. Amboss’ Ghost Addresses aim to eliminate this risk by allowing users to maintain custody of their funds.
The need for Layer 2 solutions
The recent surge in Bitcoin fees has highlighted the importance of Layer 2 solutions like Lightning Network. Ghost Addresses provide a more cost-effective and efficient way to transact on the Bitcoin blockchain. Lightning Network’s capacity currently stands at 5,180 BTC.
Hot Take: Ghost Addresses Revolutionize Lightning Network Payments
Amboss Technologies’ launch of Ghost Addresses is a significant development in the world of Lightning Network payments. By allowing users to receive payments directly into their own custody, Ghost Addresses eliminate the need for custodial wallets and enhance security and privacy. This innovation aligns with the trustless spirit of Bitcoin and provides a more convenient and automated solution for Lightning Address payments. While there are still complexities and risks involved in self-hosted Lightning Address servers, Ghost Addresses offer a step towards greater decentralization and user control in the Lightning Network ecosystem.
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