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Since its inception, the Lightning Network has evolved significantly. Numerous optimizations have smoothened the payment experience, yet it’s not flawless. Today’s user experience may not be far from our goal, but as developers, we face a challenge: What must we do to enhance user experience?

This article explores the potential user experience of the Lightning Network, based on solutions currently under development by many brilliant minds.

Current User Experience and Pain Points

A major issue in 2023 is that a significant portion of Lightning Network transactions are conducted through custodial wallets. An estimated 90% of transactions occur through applications where users must trust a custodian with their private keys.

Why do most users opt for custodial services? It boils down to convenience and the challenges of using non-custodial Lightning wallets. We categorize these challenges into three areas: operational demands, technical knowledge, and technical limitations.

Operational Demands

• Users must stay connected to send and receive payments.
• Sharing invoices outside the protocol, such as via text or email, is cumbersome.
• Running a Lightning node requires allocating bitcoins across different channels.

Technical Knowledge

• Setting up a node requires technical skills and constant connectivity.
• Offline nodes risk losing or having their bitcoins stolen.
• Node operators must balance liquidity across channels.
• Command-line proficiency is needed to resolve payment failures or blockages.
• Node backup is complex and requires storing seed phrases and channel states.

Technical Limitations

• A lack of standardized, user-friendly technology for direct payments without centralized servers.
• Always-online key signatures pose security risks.
• Channel opening and closing costs are directly linked to on-chain transaction fees.
• Lightning Network’s privacy is not yet robust enough.

Potential Future with Solutions

By 2025, with the deployment of various upgrades, the user experience could be significantly enhanced. Key developments include:

Channel Splicing for Invisible Channels to Users

Channel splicing could become common in most Lightning wallets. This would allow node operators to add or remove funds from channels without excessive on-chain fees. A unified wallet balance, indifferent to on-chain or off-chain status, becomes possible.

Lightning Service Providers (LSPs) Lowering Barriers

LSPs might become key to the user experience by hiding complexity and reducing the capital needed to operate a node. They could offer ‘cloud node’ services, combining user control over funds with reduced infrastructure interaction.

Automated Operations

Solutions for ‘always-online’ requirements, like LSPs receiving payments on behalf of offline users, could improve the payment experience.

Privacy as a Standard Feature

Developments in privacy-enhancing technologies could become seamless for users. Techniques like signature aggregation with Taproot technology could make Lightning transactions indistinguishable from other Bitcoin transactions.

RedotPay: A Superior Solution for Today’s Lightning Payments

While the Lightning Network’s future looks promising, current solutions like RedotPay stand out for their ease of use and convenience. RedotPay addresses many of the current limitations of Lightning payments, offering a more user-friendly and efficient experience.

Conclusion

The Lightning Network has proven its utility in instant settlement payments, yet it is not without flaws. However, with continuous technological advancements and the involvement of more developers and capital, the Lightning Network is poised for significant improvements in user experience, bringing us closer to an ideal of seamless and efficient payments. The excitement around the Lightning Network is based on solutions in development today, promising a better experience for all users in the near future.