How to use the Lightning Network with HardBlock

The Bitcoin Lightning Network is a layer two protocol which facilitates fast, near-instant bitcoin transfers, making it ideal for small payments. "Layer two" means that it sits on top of the base layer of the bitcoin network - transactions on lightning channels move value back and forth but are eventually settled on the bitcoin base layer on-chain.

To use lightning with HardBlock to send bitcoin, you need to be dealing with a recipient wallet (could be your own custodial wallet, or a third party such as a business or person you are sending funds to) that can generate a lightning address (or invoice) for you to input into the lightning send interface on HardBlock.

Similarly, to receive lightning on your HardBlock account, the wallet you are receiving funds from must be capable of sending lightning transfers. Some wallets (such as Sparrow) are on-chain (the base layer) only, and so that bitcoin would need to be sent to a wallet with lightning functionality before it can be sent over the lightning network.

Sending Bitcoin via Lightning

First, navigate to 'Send' under the Bitcoin menu once logged into your HardBlock account. Note that your account needs to be verified in addition to 4 days passing from your first AUD deposit before you will be able to send any bitcoin.

Then, select 'Lightning'. You will then be presented with a field where you can input a lightning invoice or scan a QR code. If you are sending bitcoin via lightning in-person, you'd want to access this on your phone so that you can easily scan the recipients lightning address or invoice.

Please be aware that some lightning address QR codes can be temperamental, and might require a few attempts before the code will scan.

Once the address is inputted, add your amount in either BTC or AUD, and hit send. The network fee will be shown once you have inputted an address.

Receiving Bitcoin via Lightning

First, navigate to 'Receive' under the bitcoin menu once logged into your HardBlock account. Then hit 'Lightning' and you will be presented with an optional amount field, followed by an optional description field. This allows you to generate a Lightning Invoice for a specific amount which you can then share with the sending wallet in order to make a payment. If you leave the amount blank, the next step will present a lightning sending address where the sender inputs whatever amount they want to send.

The Description field helps you to track payments, as well as indicate to the sender what the invoice is for.

Once generated, QR code followed by an address will be presented. You can then scan this QR code with the sending device, or copy the address and send to the user or device you are sending the lightning transaction from. Keep in mind that the wallet making the transaction must be able to make lightning transactions - some wallets are bitcoin base layer (on-chain) only.