According to a formal statement, BlueWallet is closing its lightning node connection to Lndhub. BlueWallet’s custodial lightning operations will end, costing its consumers $23,732(at the time of announcement) in Bitcoin BTC.
BlueWallet lighting services require a connection to Lightning Network nodes in order to function.
“The most important thing is that people don’t panic and suddenly noobs move out their on-chain funds or wrong lightning balances.”
Built on top of Bitcoin, the Lightning Network is a layer-2 payment system. Little amounts of Bitcoin, known as satoshis or sats, are transferred across the Lightning Network often using a lightning wallet.
A well-known Lightning Network wallet with over 42 BTC ($1 million) in liquidity is called Blue Wallet. Data from Amboss shows that its largest channel has a 4 BTC ($95,000) capacity. Popular lightning wallet BlueWallet is frequently endorsed by well-known Bitcoiners.
“It’s vital to understand that lndhub is a protocol that enables you connect wallets to accounts,” Calle said. Although BlueWallet is used in this instance, other wallets (like Alby or Zeus) also support LndHub.
“The account is shutting down, not LndHub or Bluewallet itself. The account here is hosted by the BlueWallet team and they don’t want to do this anymore.”
While users will still be able to withdraw their sats, creating new or refilling existing lightning wallets on the LndHub node will no longer be possible. BlueWallet publicly stated that users with sats connected to BlueWallet’s lightning node, they should move them as soon as possible.
February 2023, CryptoniteUae
