Home Phoenix Wallet: the Lightning wallet at lower costs ⚡

Phoenix Wallet: the Lightning wallet at lower costs ⚡

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Recently, a new version of the Phoenix wallet was released, making it even more efficient and user-friendly. Phoenix is a Lightning Network (LN) compatible wallet, allowing for much faster transactions than on the main network.

Developed by the French company Acinq, specializing in Bitcoin payment solutions, the new version of the Phoenix wallet delights the bitcoin 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 layer 2 technology built on the Bitcoin blockchain, designed to simplify and accelerate Bitcoin transactions. It addresses Bitcoin 's scalability issues by making transactions near-instantaneous. However, its adoption remains limited due to insufficient promotion.

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 vs. Non-Custodial Crypto Wallets: 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 enough 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 required, 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 avoiding your mobile and the application having to perform many operations.

The contribution of the new version of Phoenix

Thus, the key feature of the new version is the use of " splicing" technology , which allows users to send or receive satoshis on-chain, paying only the mining fees inherent to the network. According to the team behind it , "the efficiency gains brought about by splicing are so phenomenal that all wallets will eventually implement it. That's 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

Download Phoenix

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 12-word seed phrase . Protecting your seed phrase will allow you to recover your funds on any mobile device and guarantee the security of your funds.

Here are 12 tips to secure your seed phrase and sleep peacefully.

The Phoenix wallet is situated between the previous version developed by Acinq, namely Éclair Mobile, which gives its users full control over their LN transaction, and its competitors which rely on a trusted third party, such as Zap Wallet , for example.

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 third-generation version, Phoenix positions itself among the best Lightning Network compatible wallets . This could be an ideal option for those seeking 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, a growing number of applications running on the Lightning Network are appearing, such as the podcast app Fountain and the review site Apollo . All these applications, combined with user-friendly wallets, will inevitably increase the adoption of the Lightning Network and Bitcoin in general.