Why Lightning Network

🚀 How to receive your satsback on a Bitcoin Lightning Wallet?

If you don't have a Bitcoin Lightning wallet yet, follow these simple steps to set it up and claim your bonus!

📲 Step 1: Download a Bitcoin Lightning Wallet

We recommend using Muun wallet but you can download one of these free, secure, and easy-to-use wallets, available for both iOS and Android:

  • Muun wallet
    🌐 If you need a specific guide on Muun Wallet, click here.

  • Phoenix wallet 
  • Breez wallet

⚠️ Step 2: Secure Your Wallet

As soon as you install the wallet, immediately save your seed phrase (recovery phrase):

  • 📌 It is a phrase composed of 12 or 24 words that allows you to recover your wallet if your phone is lost or the app is deleted.

  • 📌 Write it down on paper and store it in a safe and private place.

  • 📌 NEVER share your seed online or with anyone else.

  • 📌 Remember: no one will ever ask you for your seed, not even the software provider itself.

Muun Wallet uses a seed consisting of 8 phrases of 4 letters each and provides a recovery kit that you should print and keep in a safe place.

⚡ Step 3: How to receive your cashback?

Now that you have installed and configured your wallet:

  • Copy your public address, which may start with lnbc1......

  • Send it to us via email at [email protected]

🎓 What is the Lightning Network?

The Lightning Network is a technology that makes Bitcoin instant and cost-efficient.

  • It enables sending and receiving micropayments without waiting for long confirmation times.

  • Perfect for small bonuses, cashback, and everyday transactions!

🚀 Bitcoin On-chain vs. Bitcoin Lightning: What’s the Difference?

Bitcoin can be used in two main ways:

🔶 On-chain (Traditional Bitcoin)

When you make an on-chain transaction, the payment is recorded directly on the Bitcoin blockchain.

  • Advantages: Maximum security, perfect for large amounts.

  • Disadvantages: Higher fees, longer confirmation times (even up to 10-20 minutes per transaction).

⚡ Lightning Network (Fast and Cheap Bitcoin)

The Lightning Network is a solution designed to make Bitcoin super fast and highly cost-effective for daily transactions.

  • Advantages: Instant payments and extremely low fees, perfect for small amounts and cashback.

  • Disadvantages: Less suitable for long-term storage of large amounts, mainly designed for frequent and quick transactions.

🧐 Why use the Lightning Network for small amounts?

If you want to send or receive small amounts of Bitcoin, Lightning is the perfect choice because:

  • Fees are minimal or nearly zero (often less than 1 satoshi!)

  • Payments are instant

  • No need to wait for blockchain confirmations

In contrast, on-chain payments can be inconvenient or even more expensive than the amount you're transferring.

🔄 How to transfer funds from Lightning to an On-chain wallet (or vice versa)?

Modern Lightning wallets (such as Phoenix, Breez, or Muun) allow you to:

  • Receive Lightning payments and easily convert them into on-chain Bitcoin.

  • Move funds from your Lightning wallet to a traditional wallet (such as hardware wallets, SegWit, Taproot addresses, etc.).

How to do it?

  1. Open your Lightning wallet.

  2. Select “Send” or “Withdraw to Bitcoin address”.

  3. Enter a Bitcoin on-chain address (SegWit, Taproot, or Legacy).

  4. Confirm the transaction. The wallet will automatically convert Lightning to On-chain for you, with a small conversion fee.

📌 Important Note on Bitcoin Addresses:

Bitcoin wallets use different types of addresses:

  • Legacy (starting with “1…”): Older addresses, more expensive to use.

  • SegWit (starting with “3…” or “bc1…”): Cheaper and faster than legacy.

  • Taproot (starting with “bc1p…”): The newest, even more efficient, cost-effective, and secure.

Most modern wallets support SegWit and Taproot. You can safely send converted Lightning Bitcoin to these addresses!

🧅 Bitcoin is Like an Onion: Discover the Different "Layers"

You can imagine Bitcoin as an onion, composed of various layers:

Layer 1 (On-chain)

  • This is the core of the onion, the fundamental level.

  • All transactions are recorded directly on the Bitcoin blockchain.

  • It is the main structure, solid and secure, but slower and more expensive for small operations.

Layer 2 (Lightning Network)

  • This is an additional layer built on top of Layer 1.

  • Imagine it as a fast highway built above a main road.

  • Instead of making transactions slowly on the main road (blockchain), you use the highway (Lightning Network) for fast, cheap, and frequent payments.

🚗 A Simple Roadway Analogy:

  • Layer 1 (On-chain) is like a slow state road, where every car (transaction) pays a toll and waits in line. Perfect for securely transferring valuable goods over long distances.

  • Layer 2 (Lightning) is like a fast highway, built over or next to the main road, where cars (transactions) can travel quickly without constantly stopping to pay tolls, only paying when they enter or exit the network.