p2p
p2p fiat
p2p@getalby.com
Jul 19, 2023

Onboarding to the digital p2p value transfer protocol

How can you help your friends onboard to the btc protocol?

The broad free open source software and protocol development community sprouts many services and apps that can help you aquire, spend and save bitcoin.

This consideration will briefly touch on a few glossary items. It will subsequently indicate what software to use for easy onboarding to the bitcoin protocol. To conclude, it will give an overview of how to obtain satoshis or bitcoin for your own use.

While no one can guarantee anything - do your own research - it is an ambition to provide you with software and services that are seen by many as trustworthy.

Glossary:

  • 1 btc or bitcoin = 100 million satoshi
  • wallet = signing device - wallets don't contain any btc, only the ability to sign transactions that move satoshis
  • self custody = the ability have full control over btc - no trusted third party is involved
  • custodial wallet = btc are controlled by third party that one has to trust - that third party controls the btc - typically provides access through a certain "login"
  • the bitcoin lightning network - LN - a layer 2 solution that enables "instant final settlement at almost zero cost" - different than the layer 1 bitcoin protocol for which transactions can cost more than 0.5 $ and can take between 10 minutes and days to settle

Bitcoin - for saving, not for spending

Onboarding to bitcoin itself is most straightforward - typically only relevant for saving, not for spending, as fees are on the high side. The only thing that matters is a seed phrase that consists of 12 or 24 keywords. With those keywords, someone has access to the btc across a range of signing softwares. The most compelling wallets (signing softwares) are:

You can check the reliability of a signing software or wallet on the WalletScrutiny website.

Bitcoin on Lightning Network - for payments

Onboarding to the lightning network is slightly more costly or complicated than onboarding to bitcoin.

The lowest cost solution - custodial

  • Custodial - you have to trust Galoy
  • The Blink wallet enables sending & receiving bitcoin over lightning
  • Additionally, the Blink wallet enables 'swapping' satoshis to USD - if anyone feels uncomfortable about the volatility of bitcoin, this allows to hold bitcoin with a fixed USD value - and still be able to pay with bitcoin

Self custodial - non zero cost

The most advanced self custodial wallet is the 10101 wallet - which also enables holding fixed USD value - USDp - based on distributed log contract technology.

The Phoenix wallet is the easiest self custodial solution available. Since July 11, 2023, the Phoenix wallet costs will be limited to:

  • 1000 satoshis (0.3 $ at the time of writing) + bitcoin network fees (which you would pay to receive any bitcoin on layer 1)
  • 0.4% for any payment over lightning network

Alternatives to Phoenix wallet include Breez wallet (slightly more costly) and Blixt wallet

If you don't have access to the Android or iOS app stores, you can use the Mutiny wallet, which is still early stage, and works in any web browser - both on desktop and mobile. You don't even need permission from Google or Apple to use the Mutiny wallet.

Self custodial - zero cost

Most recently, "ziggie" posted about a method to set up a lightning channel without any cost - and without any use of blockchain space: here This requires a trusted party with a lightning node. If you understand that method, you would probably not read this blog post.

How do you get btc in your wallet?

  • Get satoshis for free
    • While browsing with Slice
    • By playing games with ZBD
  • A gift from a friend - a friend can send to your wallet or give you a seed phrase - 12 or 24 keywords - or send over lightning network
    • Real friends give btc to their friends
  • Buy from a friend - a friend can send to your wallet or give you a seed phrase - or send over lightning network
    • Real friends sell btc to their friends
  • Buy through Vexl - this ensures you only buy from trusted parties - not from criminals - unless you have criminals in your network - not lightning network compatible
  • Buy through Pocket - no KYC required - not lightning network compatible
  • Buy through Kraken - can also send over lightning to your lightning wallet
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