Amboss, a prominent data analytics provider for the Bitcoin Lightning Network (LN), has introduced a new subscription service called Hydro. This service aims to streamline liquidity management for the LN, allowing businesses to receive payments through the Lightning Network without needing expertise in LN operations or giving up control of their funds.
Hydro simplifies the payment liquidity process of the Lightning Network by automating the sourcing of payment liquidity from decentralized sources directly to a business’s LN node. As more businesses adopt the Lightning Network, the circular economy grows, resulting in more cost-effective Lightning payments. Fees have dropped from an initial 3.5% setup cost to as low as 0.003% for subsequent payments.
Jesse Shrader, Co-Founder and CEO of Amboss, highlighted the transformative potential of Hydro, stating, “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’.”
Until now, sourcing liquidity for businesses on the LN has been challenging, as entrepreneurs often lack the time and expertise to manage a LN node. This has led to slow adoption of Lightning for retailers using full nodes, forcing them to rely on trusted custodians and sacrificing some of the privacy and sovereignty advantages offered by Bitcoin. With Hydro, businesses can finally enjoy the full benefits of LN adoption without the associated difficulties.
Amboss also operates Magma, a marketplace for buying and selling Lightning channels. Hydro leverages Magma to obtain high-quality liquidity from an open market. Lightning channels create new pathways for routing payments within the Lightning Network, and selling these channels on Magma allows Bitcoin savers to earn BTC by opening Lightning channels to various destinations. This provides novel Bitcoin yield opportunities without custodial risks, avoiding the issues faced by some centralized finance (CeFi) yield platforms.
Hydro’s functionality involves purchasing select Lightning channel leases that meet specific quality criteria at the lowest available prices. Users can define their desired node size (capacity), and channels will be automatically procured using prepaid Amboss credits, known as “ambucks.” Users also have the option to set a target inbound liquidity, facilitating cost-effective and needs-based channel management.
Amboss’s Hydro aims to revolutionize the Bitcoin Lightning Network by making it more accessible and user-friendly for businesses. This will ultimately drive wider adoption and foster the growth of a robust, decentralized payment ecosystem. To learn more about Amboss or subscribe to its comprehensive Lightning Network insights, services, and more, visit their website.
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