Key concepts

Lightning Network

A peer-to-peer payment network that allows for instant, low-cost BTC transactions.

Lightning Channel

A connection between two nodes on the Lightning Network, allowing for secure and efficient transactions.

Lightning Wallet

A wallet that allows you to send and receive payments on the Lightning Network. There are two types of wallets: custodial and non-custodial. JoyID Lightning Wallet is a non-custodial wallet.

Invoice

A request for payment, created by the receiver.

Open Channel

The process of establishing a new channel on the Lightning Network, which involves funding it with an initial amount of Bitcoin.

Close Channel

The process of closing an existing channel, which settles the final balance on the Bitcoin blockchain.

Fund

The process of adding funds to your Lightning channel to increase its capacity.

Inbound Liquidity

The amount of funds that can be received through your channel. It represents the capacity for incoming transactions.

Outbound Liquidity

The amount of funds that can be sent through your channel. It represents the capacity for outgoing transactions.

Channel Capacity

The total amount of funds that can be transacted through the channel, combining both inbound and outbound liquidity.