Automation and control of your own funds: how to manage Lightning nodes in the cloud without compromising security.
Self-custody represents one of the fundamental pillars of the Bitcoin ecosystem. When a user maintains direct control over their funds, they fully realize the principle “not your keys, not your coins” that distinguishes Bitcoin from traditional financial solutions. This characteristic, sometimes sacrificed for ease of use, finds a new application thanks to tools like Lightstack.
The importance of self-custody
In traditional custody solutions, a third party holds the user’s funds, compromising the principle of “trustlessness” at the foundation of Bitcoin. Although custodial solutions may be tolerated for small amounts or to accommodate beginners, the natural evolution leads toward complete autonomy in managing one’s bitcoin.
It’s understandable that a beginner might start with custodial wallets to become familiar with the technology. The priority goal remains increasing transaction volume outside traditional financial networks, even at the cost of temporary compromises on custody. However, as volumes and experience increase, adopting self-custodial solutions becomes essential.
Self-sovereign tools
In this context, tools emerge that facilitate the transition to full autonomy:
- Phoenixd: on-demand node developed by Acinq;
- LNBits: modular suite of Lightning tools with integrated API;
- Voltage: more complex but customizable solution.
The combination of phoenixd and LNbits can be effectively orchestrated through Lightstack, a software available on GitHub.
Lightstack: simplified autonomy
Lightstack allows you to create and manage self-custodial Lightning nodes in the cloud using a simple VPS (Virtual Private Server). This approach guarantees users complete control over keys and access, while automating the technical complexities of implementation.
When using Lightstack, an LNBits instance becomes immediately available on the node. The system automatically configures SSL certificates for all domains associated with phoenixd endpoints and the LNBits interface, including its API.
Why choose LNBits
LNBits represents the true operational command center of the Lightning node, offering a platform on which to run numerous applications and plugins. Developers can create custom applications using the powerful integrated APIs. A practical example is the Sats.mobi Lightning Suite, a solution I personally developed using the LNBits architecture. This suite offers a wide range of Lightning-native services: vouchers, POS, LNDHub interface, and support for NFC cards. Thanks to integration with the Boltz service, it’s also possible to implement swap functionality between different layers.
Main features of Lightstack
- Secure connectivity: the Phoenixd endpoint is accessible via SSL connection;
- API accessibility: available at
https://n1.yourdomain.com; - Complete autonomy: manage your own cloud Lightning node from your own domain;
- Integrated LNBits: available immediately after installation;
- Multistack functionality: possibility to add multiple stacks to the same VPS;
- Hybrid interface: available both web and command line.
Soon a VPS service with the pre-integrated system will be available, thanks to collaboration with Denali Pro, a Swiss Internet service provider with which I am professionally involved.
The potential of LNBits integrated in Lightstack
LNBits offers a wide range of immediately available features:
- Advanced accounting system: balance protection through unique API keys for each wallet;
- Extensible platform: modular extension framework to customize the experience. If capable, users can also write their own extensions and add custom functionality to their setup;
- Development stack: powerful APIs that simplify the development of Bitcoin/Lightning services;
- Complete support for the LNURL protocol;
- Instant wallet: ideal for demonstrations and rapid implementations;
- Financial management tools: transaction tables, expense graphs and CSV export;
- Multiplatform: native applications for iOS and Android plus Chrome extension.
There are no more excuses for not adopting a self-custodial solution. With Lightstack it’s possible to immediately activate a self-custodial Lightning node, without worrying about channel balancing or liquidity management, while maintaining an intuitive interface and full control over your funds.
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