BOLT12 Officially Merged: A Major Upgrade to the Lightning Network
BOLT12 (Offers) has officially been merged into the Lightning Network's specification, marking a key milestone in the network's evolution. This new protocol introduces improvements to Lightning payments, enhancing efficiency, privacy, and flexibility for a wide range of use cases, including subscriptions, recurring payments, and donations.
Source: NoBSBitcoin
Key Features of BOLT12:
Dynamic and Reusable Offers:
Unlike traditional Lightning invoices, which are static and single-use, Offers allow for dynamic invoice creation. This means users can request and generate invoices on-demand without needing to manually create new invoices for each transaction.
Offers can be reused for multiple payments, opening up possibilities for subscriptions and pay-as-you-go services.
Improved Privacy and Censorship Resistance:
One of BOLT12’s standout features is the enhancement of receiver privacy. In traditional Lightning transactions, receivers need to provide sensitive information to issue an invoice. BOLT12 enables payment requests without exposing private details, reducing the likelihood of censorship or tracking.
This increased censorship resistance is particularly important for users seeking greater privacy in their transactions.
Recurring Payments and Subscriptions:
With BOLT12, businesses and service providers can now offer subscription-based services or recurring payments directly on the Lightning Network. This innovation will enable seamless payments for ongoing services without the need for constantly generating new invoices, vastly simplifying user interactions.
Streamlined Payment Processes:
BOLT12 simplifies payment flows by automating invoice creation and making it easier to manage multiple payments. This helps in reducing friction for both users and merchants, making the Lightning Network a more user-friendly payment system.
Expanding Use Cases:
BOLT12’s flexibility makes it well-suited for a broader range of applications on the Lightning Network. Potential use cases include:
Donations: Users can set up persistent offers for donations, allowing supporters to contribute without needing to request new invoices for each donation.
Pay-as-you-go services: Services that charge based on usage can integrate BOLT12 Offers to handle payments in real-time.
Advanced payment conditions: Offers can support more complex payment conditions, such as time-locked payments or split payments, further enhancing the network's capability.
For more details on BOLT12 and its potential applications, you can explore further information here.
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