Blockstream has launched an update for its mobile app, enabling users to switch between Bitcoin’s Lightning and Liquid networks. This update is designed to simplify the process for making private, quick bitcoin payments.
The latest version of the Blockstream Green app now supports trustless atomic swaps between Lightning and Liquid. This enhancement allows users to pay Lightning invoices using their Liquid bitcoin (LBTC) balances, removing the need to manage Lightning channels or maintain inbound liquidity, which can be complex for many users.
While Lightning is intended for immediate, low-cost bitcoin transactions, Liquid serves as a sidechain that facilitates confidential transactions and simpler management of unspent bitcoin outputs (UTXOs). By integrating these two networks through atomic swaps, Blockstream aims to provide users with the advantages of both without extensive technical involvement.
The swapping process is executed directly by the users and employs cryptographic hash locks, ensuring that either both sides of the transaction complete or neither do. If a failure occurs, the funds will revert automatically to the original wallet.
This method may be attractive to users wanting to spend bitcoin at venues that accept Lightning, such as cafes or online retailers, while preferring to keep their funds in more private, off-chain environments like Liquid. Additionally, merchants can benefit by accepting payments via Lightning while safeguarding assets in a Liquid wallet, eliminating exposure of balances or dependence on hot wallets.
Blockstream has indicated that more enhancements are on the horizon, including on-chain swap support, which will facilitate moving funds between bitcoin’s main network, Liquid, and Lightning all from a single interface. Another forthcoming feature will enable Lightning payments to be directed to hardware wallets like the Blockstream Jade.
This integration is a part of an ongoing initiative to enhance interoperability within bitcoin’s expanding ecosystem of second-layer protocols, while maintaining user control over private keys. The update is currently live in the Blockstream Green app.
