Amboss launches tool to boost Bitcoin’s Lightning Network adoption.
Amboss launches tool to boost Bitcoin's Lightning Network adoption.
Amboss Unveils Hydro: Automating Liquidity Management for the Lightning Network
The adoption of blockchain technology has paved the way for various applications and innovations, and one of the most promising developments is the Lightning Network (LN). LN is a scaling solution for bitcoin that enables faster and cheaper transactions by utilizing off-chain channels. However, despite its potential, LN adoption has been hindered by the complex liquidity management process. To tackle this challenge, Amboss, a leading data analytics provider for the Bitcoin Lightning Network, has recently unveiled a subscription service called Hydro.
Hydro aims to revolutionize the management of liquidity on the Lightning Network, making it more accessible and user-friendly for businesses. The service automates the sourcing of payment liquidity from decentralized sources directly to a business’s LN node, eliminating the need for expertise in LN operations or reliance on trusted custodians. This removes the headache of channel management and enables businesses to effortlessly receive payments through the Lightning Network while retaining full custody of their funds.
With Hydro, businesses will experience a simplified payment process and cost-effective Lightning payments. The burgeoning circular economy within the Lightning Network drives down fees, resulting in reduced costs for subsequent payments. According to Amboss, fees can drop from an initial 3.5% setup cost to as low as 0.003% for subsequent transactions. This cost efficiency is a significant incentive for businesses to adopt the Lightning Network, as it enhances their financial viability and stimulates the growth of global circular economies.
Jesse Shrader, Co-Founder and CEO of Amboss, firmly believes that Hydro will be a game changer for businesses. He stated, “Hydro is a game changer for businesses to get the benefits of the lightning network without trusted custodians, intermediaries, or the headache of channel management. As the lightning network welcomes global participation, Hydro simplifies real-time payment infrastructure to bootstrap global circular economies like we’ve seen in Costa Rica’s ‘Bitcoin Jungle’.” This highlights Hydro’s transformative potential in enabling businesses worldwide to embrace the Lightning Network and unlock its benefits.
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The Hydro service fills a crucial gap in LN adoption by providing liquidity to businesses that lack the time and expertise to manage a LN node. Previously, these entrepreneurs had to rely on trusted custodians, which resulted in sacrificing some of the privacy and sovereignty advantages offered by Bitcoin. With Hydro, businesses can effortlessly tap into the full potential of LN adoption without compromising their financial independence and security.
Hydro leverages Amboss’s existing marketplace, Magma, for buying and selling Lightning channels. This marketplace enables Bitcoin savers to earn BTC by opening Lightning channels to various destinations, such as online stores, wallets, or other LN users. With Lightning channels enabling self-custodial Bitcoin holding, Magma provides novel Bitcoin yield opportunities without the risks associated with centralized finance (CeFi) yield platforms.
The functionality of Hydro involves purchasing Lightning channel leases that meet specific quality criteria at the lowest available prices. Users can seamlessly define their desired node size and channels will automatically be procured using prepaid Amboss credits known as “ambucks.” Furthermore, users have the option to set a target inbound liquidity, facilitating cost-effective and needs-based channel management.
Amboss’s Hydro subscription service is poised to reshape the landscape of the Bitcoin Lightning Network. By automating liquidity management and simplifying payment infrastructure, Hydro makes the Lightning Network more accessible and user-friendly for businesses worldwide. This will drive wider adoption, fostering the growth of a robust and decentralized payment ecosystem.
To learn more about Amboss or subscribe to their comprehensive Lightning Network insights, services, and more, visit their website here.
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