Do You Need to Create an Invoice to Use Bitcoin Lightning Network Payments?
- YouTuber explains how to avoid invoicing with the Lightning Network on Bitcoin’s network.
- This solution is a hack, rather than a true feature, of the Network.
Anyone who is a proponent of Bitcoin has been looking forward to the Lightning Network, which has proven to be one of the most beneficial additions to the network. However, in order for a payee to receive a payment, they have to issue an invoice. As developers seek out a way to deal with this concern, there is already a method in place that is a little more circular to get around it.
Ultimately, the easiest way is for the payee to create an invoice and send to themselves, according to a popular crypto media outlet. The transaction amount gets left bland, as the intended recipient filled in as an overpaid forwarding fee. This way of routing currency is presently capable of being used on all implementations of the Lightning Node.
Even though an invoice is still involved, it is a self-generated invoice with no need to have the payee issue it technically. Instead, they become a part of the “fee” drop off. To fully explain this process in greater depth, watch:
Still, users of this routing process need to understand that it is more of a hack than an actual feature, as the feature is still in development. Due to that fact, there are risks involved that consumers need to be aware of. For starters, there’s higher fees and a greater chance of failure as a result of the longer route that the payment takes. The Bitcoinist also points out that there is no way to show the money as an expected payment, and that both sides have to have enough liquidity.
The biggest issue that seems to arise is security. As the transaction goes through, it is likely that it will move through other nodes. If any malicious actors are involved in the intermediary nodes that go both ways, they have the opportunity to steal the nodes.
Consumers should keep in mind that this hack is just a hack and that the network itself is still an experiment. When the network becomes more stable and secure, there might be a secure version of this hack made into a feature, considering that the mass adoption of Bitcoin essentially relies on this scalability option.
Bitcoin’s price is $49,153.49 BTC/USD exchange rate today. The real-time BTC market cap of $919.73 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $27.27 Billion and live coin value change of BTC 0.55 in the last 24 hours.