What Is LN Bank?

LN bank on BTC pay server

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The Lightning Network is not a blockchain; it’s a protocol player that is tethered to the bitcoin base chain and with that comes certain trade-offs. Certain aspects of the bitcoin base chain wallet experience have yet to migrate to the Lightning Network, limiting users and app builders from being able to provide a like-for-like experience for both payment rails.

One issue with Lightning is managing separate balances; sure, you can create several Lightning Wallets tied to one bitcoin private key, but unlike bitcoin, where you can manage different public addresses from one wallet using an x-pub and do your accounting that way, Lightning collects all balances together.

Having a consolidated balance isn’t the end of the world, but it can be a bother for those who share resources or want to manage all their affairs from a single setup. One way to create Lightning wallet separation is by leveraging BTCpay server and their LN bank plugin.

What is LN bank?

LN bank is a plugin for BTCPay server which allows a custodian to create Lightning wallets and use them to send and receive Lightning payments. All Lightning payments, regardless of which BTCPay store, are administered together by the Lightning Node on the BTCPay server.

The separation between individual BTCPay stores was not possible under the standard setup, as is the case with on-chain Bitcoin payments. A solution for base chain bitcoin payments is to create a separate Bitcoin wallet can be created, or a separate xPub key can be stored for each BTCPay store.

Before the launch of LN bank, there was no solution to provide the same option for Lightning wallets.

How can LNbank be used?

Those who run multiple BTCPay stores with their BTCPay server to capture payment processing for different projects usually want to separate these payments.

This could be in the form of separate projects, to run separate private and business projects or because one co-manages projects of friends via a single BTCPay server. Adding LN bank and users can create multiple Lightning Wallets for different accounts, which can be linked to BTCPay stores.

The Lightning payments on this BTCPay store are then credited to the respective Lightning wallet, and the account holder can freely dispose of them. The technical base infrastructure is the Lightning Node of the BTCPay Server, and LNbank are quasi sub-accounts of this Lightning Node.

Managing multiple wallets with LN bank

Limitations of LN Bank

If you do not have your own BTCPay server but use a BTCPay server of a third party, you must be aware that, in extreme cases, you will no longer be able to access your Lightning Wallet. While with the Bitcoin Wallet, you have access to your Bitcoin on-chain balance at any time through your private keys, this is not the case with the Lightning Wallet with a third-party solution.

Therefore, this solution should be used only for trial and with very small amounts. The credit should be transferred to its own Lightning Wallet at any time.

For larger turnovers, it is recommended that you set up a node and run a BTCPay server for yourself so you remove that custodial risk and have more control over your LN bank.

Who would benefit from LN Bank?

If you’re running a Lightning Node with BTCpaysever having an LN bank will allow you to separate your Lightning transactions, you could have one wallet for your private or business affairs.

Business owners

If you’re a small business owner, who may have multiple businesses, you can have an LN bank with Lightning wallets for each entity and manage all your payments from one interface, saving you a whole lot of time and making accounting a lot easier.

Business opportunities

Alternatively, perhaps you’ve been set up for Lightning payments. Still, if your friends and family have businesses that want to accept Lightning payments, you could set up an LN wallet on their behalf, and they can use this wallet for their payments leveraging your infrastructure.

Content creators

Content creators might find this valuable, too, as they could set up Lightning wallets for their different media channels, such as:

  • Podcast
  • Social media accounts
  • Newsletter
  • Blog articles

This way, content creators can see which medium drives the most value and can double down on the mediums that earn them the most money or focus on improving the channel that is lagging.

Uncle Jim rides the Lightning

Perhaps you’re the bitcoin custodian, aka Uncle Jim, amount your friends and family, and you want to help onboard your loved ones onto Lightning without having to expose themselves to custodial services. Setting up an LN bank for each family member and helping them facilitate their payments within your walled garden can be a safer option.

Learn more about LN Bank

Block Digest Special Edition talking about LN Bank


  1. https://github.com/
  2. https://github.com/dennisreimann/btcpayserver-lnbank

Are you a bitcoin and lightning fan?

Have you been using Lightning to make micro-payments? Stream sats or engage with apps? Which app is your favourite? Have you tried all the forms of Lightning payments? Which one do you prefer? Let us know in the comments down below.

Disclaimer: This article should not be taken as, and is not intended to provide any investment advice. It is for educational and entertainment purposes only. As of the time posting, the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency, as all investments contain risk. All opinions expressed in these articles are my own and are in no way a reflection of the opinions of The Bitcoin Manual

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