How to open a channel?

Opening channels is a foundational part of using the Lightning Network with a self-custodial wallet๐Ÿ’ช

Channels are a foundational aspect of the Lightning Network, enabling fast and cheap off-chain transactions. In Alby Hub, there are two main reasons to open a channel. The first is to top up your Spending Balance with satoshis for spending on apps or Bitcoin stores. The second is to ensure you have enough Receiving Capacity to receive tips, boostagrams, or payments.

Important: channels can be public or private.

  • Public channels are used by routing nodes and podcasters.

  • Private channels are used by private nodes and self-custodial wallets.

It is not recommended for a node to mix private and public channels. While all channels can send and receive funds, having both public and private channels can cause private channels to struggle with receiving bitcoin. This turns them into "spend-only" channels, and once emptied, they lose their receiving capacity due to conflicts with public channels, making them useless.

Should I open a private or public channel?

Now, let's open your first channel!

1 . Go to "Node" in your Alby Hub

There are two purposes of opening a channel:

  • You can open a channel to Top Up your Spending Balance

  • Or open a channel to increase your Receiving Capacity

Open a channel to top up your Spending Balance.

By clicking on "Top up" you are transferring funds from the Savings Balance to your Spending Balance. Technically speaking you are opening a new payment channel.

Or open a channel with Receiving Capacity

When opening a channel to increase your Receiving Capacity, you are purchasing it from an LSP.

LSPs (Lightning Service Providers) are individuals or companies that help you increase your Receiving Capacity by allowing you to buy a channel from them. You pay a small fee, and they open a channel to your self-custodial wallet, increasing the amount of bitcoin you can receive through payments made to your wallet.โšก


2 . On the channel-opening section, click on "Open Channel"

Whether it is a channel to Increase Spending Balance or Receiving Capacity:

  • Channel for Increasing Receiving Capacity: Select the size in satoshis for your desired increase in Receiving Capacity. This will determine how many satoshis you can receive in your Alby Hub self-custodial wallet. These channels may open instantly or also require up to 6 block confirmations.

  • Channel for Topping Up Spending Balance: Choose the amount of satoshis you wish to top up. If you have enough satoshis in your Savings Balance, the channel will begin the opening process after you click "Open Channel." You will need to wait for 3 to 6 block confirmations until the channel is fully opened. If you do not have enough satoshis in your Savings Balance. You will be asked to deposit onchain funds to open this channel, and the channel will be opened automatically right after you deposited the requested funds.

Learn more about your Savings Balance here:

๐Ÿ’ฐSavings Balance

Here is a screen about waiting for a Top Up Spending Balance channel opening:

Great! ๐ŸŽ‰ Now you understand why and how to open a channel!

๐Ÿ’กTIP๐Ÿ’กIt is recommended to have more than one channel. The usual would be to open a channel with Spending Balance, and another with Receiving Capacity.๐Ÿ˜Š


Thank you for stopping by! This section was created with contributions from Moritz & Jean-Paul

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