ZoneBitcoin EditorialRecently a new version of the wallet Phoenix was put online, making the use of the wallet even more efficient and more practical. Phoenix is a wallet compatible with the Lightning Network (LN), which allows transactions to be carried out much faster than on the main network.
Developed by the French company Aquin, specializing in Bitcoin payment solutions, the new version of the Phoenix wallet delights the bitcoiner community.
In this article, we will present the features of Phoenix, its installation and operation, as well as its positioning on the Bitcoin wallet market.
Phoenix: a general public Lightning wallet
The Lightning Network is a second-layer technology (layer 2) built on the Bitcoin blockchain, which aims to simplify and accelerate Bitcoin transactions. Thus, the lightning network allows you to resolve the Bitcoin scalability issues by making transactions almost instantaneous. However, its adoption is still limited because there is still little promotion on the subject.
However, easy-to-use wallets like Phoenix make it easier to approach Lightning. The user experience has been designed so that a complete beginner can use the wallet just like a proven bitcoiner. It is in fact a self-custody LN portfolio which meets the sovereignty requirements of its funds.
—>Read the article: Custodial and Non-Custodial crypto wallet: What are the differences?
Phoenix offers several innovations related to the Lightning Network, such as “pay-to-open”, which automatically creates channels for you if you do not have sufficient liquidity to receive a payment. It also allows you to use a channel as soon as it is created without having to wait for the few confirmations usually necessary, thanks to the “spend-unconfirmed” functionality. The wallet also integrates “trampoline payments” technology, which allows you to delegate the calculation of LN payment routes, thus preventing your mobile and the application from having to carry out numerous operations.
The contribution of the new version of Phoenix
Thus, the great particularity of the new version is the use of “splicing”, which allows you to send or receive satoshis on chain, paying only the mining fees inherent to the network. For the team behind, “the efficiency gains brought by splicing are so phenomenal that all portfolios will eventually implement it. This is why this technological improvement marks the beginning of a new generation of wallets”.
So, on the new version, users only have one channel. In the past, adding funds meant systematically opening a new channel, which incurred costs. Indeed, the fees were 1% with a minimum of 3000 satoshis.
The other new feature, found on wallets like Bluewallet, allows users to choose the transaction fees for minors themselves. This can be an option if an operation wants to be processed more quickly for example.
Installation and operation of the Phoenix Wallet
The new version of Phoenix is currently available on iOS but at the time of writing the Android version is in beta and testing.
To secure your Phoenix account, you will need to choose a 6-digit code, then a speed phrase of 12 words. Please protect your seed phrase well, allowing you to recover your funds on any mobile device and guaranteeing the security of your funds.
->Here are 12 tips to secure your seed sentence and sleep in peace
The Phoenix wallet is located between the previous version developed by Aquin, namely Éclair Mobile, which gives full power to its users over their LN transaction, and its competitors which rely on a trusted third party, such as Zap WalletEg.
For the user, everything works like a traditional wallet: you send and receive your funds by entering a Bitcoin address or by flashing a QR code.
Phoenix wallet fees
Regarding transaction fees, Phoenix has drastically reduced fees, making this LN wallet one of the cheapest on the market.
- Lightning transaction: 0,04% of the amount sent and no fees for bitcoin receipts.
- Swap-in: Only transaction fees paid to miners.
- Swap out : Only transaction fees paid to miners.
The advantages and limitations of Phoenix
Phoenix offers a simplified user experience for Bitcoin payments, notably thanks to its integration with the Lightning Network. Transactions are faster and less expensive than traditional Bitcoin transactions. The app is also easy to use and user-friendly.
However, Phoenix has its limits. It is linked to a node managed by Aquin, which may pose trust and privacy issues for some users.
Conclusion
With this 3rd generation version, Phoenix places itself in the best wallets compatible with the Lightning Network. This can be an ideal option for those looking for simplicity and security while wanting to reduce transaction fees.
Phoenix rather targets a broad audience and helps make the Lightning network ever more effective.
Moreover, more and more applications running on the Lightning Network are appearing such as the Fountain podcast application or even the Apollo review site. All these applications combined with easy-to-use wallets will necessarily increase the adoption of the Lightning Network and Bitcoin in general.
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