A lighting network is a Bitcoin technology that enables the Bitcoin blockchain to conduct its transactions more effectively and efficiently. Transactions conducted on lightning networks are faster, less costly, and readily confirmed on the bitcoin blockchain.
On the other hand, a Lightning node interacts and connects with the lightning network and with the blockchain network. It is the gateway into the Lightning Network.
You will always need at least one node running to explore the Lighting Node technology. Luckily, you can run a node regardless of the network you are using.
In this article, we will show you a step by step guide on how to install a lightning network node.
Setting Up Lightning Network Node
Step 1: Get the Hardware and Equipment
Running a reliable lightning node requires well-functioning hardware. These are the best materials you will need to make your lightning node:
- Raspberry Pi 4 Model B, 4 GB
- Raspberry Pi 4 case, including the fan
- Power source
- 32 GB SD card and adapter
- Samsung T7 Touch Portable Solid State Drive (SSD), 1 TB for data storage
- 5FT Ethernet cable
Assemble the Raspberry Pi case, then install the heat sinks and the fan.
You don’t require a Raspberry Pi to run your node. You can run it on your computer. However, running it on your PC makes it more vulnerable to digital attacks.
Step 2: Install the Software
Now you need to install RaspiBlitz in the Raspberry Pi and write it on the memory card. Using the Raspberry Pi Imager is the best way to install the software. If you are using a regular PC, use Umbrel.
Here’s also a video that will help you use the Raspberry Pi Imager.
Step 3: Connect to the Network
Once you have installed RaspiBlitz, it will give you a step-by-step guide on how you will set up a wallet and load it.
After syncing up your wallet, you will need to download the Bitcoin blockchain. This process might take several hours and sometimes a couple of days.
After the download, open a lightning channel and connect to a node. You can now start sending BTC from your node!
Step 4: Set Your Fees and Create Channels
After the Lightning Network is downloaded and connected to your node, set your lightning fee for forwarding transactions. You can also connect to other Lightning nodes and find Lightning channels.
Once your Lightning node is operational, open one or more payment channels to another high capacity and reputable node to route payments through them. If you don’t, your node will not be able to send payments.
A high capacity node is a node with large numbers of bitcoin locked into it. Go to Lightning Node Explorer to get great nodes.
Why Should You Have a Node?
When you are running a Lightning node, you have full ownership of your crypto. You have the complete blockchain information on your node. So you will not need intermediaries to keep your coins for you. Additionally, you won’t just be a user of Bitcoin, but you will be an active contributor to its Blockchain. You can also earn some Small Bitcoin Units when you pass some lightning payments across the Lightning Network.
So having a node can be profitable.