Today, Boltz unveiled the Boltz BTCPay Plugin, marking the debut of its kind in open beta. This plugin allows merchants utilizing BTCPay Server to easily accept bitcoin via Lightning, which is then automatically swapped and securely stored on the Liquid Network.
The Boltz BTCPay Plugin’s “Nodeless” functionality employs Liquid Swaps to seamlessly perform the swap from Lightning to Liquid as soon as a Lightning invoice is paid. Through Liquid Swaps, users of the Boltz BTCPay Plugin can also convert bitcoin back to the mainchain if desired. The plugin features an integrated wallet system, allowing users to create or import both Liquid and mainchain wallets.
“Merchants can receive or accept bitcoin by converting incoming Lightning payments into their Liquid wallets without needing to manage a node,” said Kilian, CEO of Boltz, in an interview with Bitcoin Magazine.
“Ultimately, they will hold LBTC — Liquid BTC,” he explained.
“We also aim to provide them with an option to automatically revert to the mainchain if they wish. They can set a threshold, like, ‘Okay, if my Liquid Bitcoin balance hits 0.1 bitcoin or 0.5 bitcoin, convert it back to the mainchain.’”
Throughout the use of this service, merchants maintain complete control over their funds.
Boltz created the plugin to reduce the stress associated with operating and managing a Lightning node.
“Managing a Lightning node is a challenging task,” remarked Boltz CTO Michael in a press release. “Channel management is intricate and understanding inbound liquidity can be quite difficult.”
Kilian reaffirmed Michael’s thoughts, stating that “for many individuals, running a personal Lightning node is not a feasible or recommended objective, and even for professionals like merchants, it’s often unmanageable as of now.”
Earlier options for accepting Lightning payments without managing a node were often custodial, introduced counterparty risk, or were restricted to particular regions.
Since this plugin is both innovative and unique, the Boltz team advised users to approach it with care as it may still contain bugs. Kilian mentioned that the plugin has effectively processed thousands of transactions, and that Strainly, an online marijuana retailer, is fully operational using it.
“After a month of testing the Boltz plugin with thousands of users, I can confidently say this is indeed a revolutionary tool,” said Alan, CEO of Strainly, who has previously faced mixed results with custodial Lightning solutions like LNBank and other Lightning Service Providers (LSPs). “Processing LN payments directly to and from a non-custodial Liquid wallet, while automatically consolidating the Liquid balance to my non-custodial BTC wallet based on my custom thresholds: this is, without a doubt, the most transformative plugin ever launched on BTCPay!”
