Relai, the Bitcoin-only app based in Switzerland, is preparing to introduce Lightning payment functionality through its integration with Blockstream’s Greenlight solution. In a recent announcement, it was revealed that Blockstream’s Lightning-as-a-service solution will be integrated into Relai’s Bitcoin-only wallet platform. This integration will allow Relai’s 100,000 users to make low-cost Bitcoin payments using the Lightning Network while maintaining control over their private keys. By integrating Greenlight, Relai can avoid the need to create and maintain its own Lightning infrastructure.
Greenlight was launched by Blockstream in June 2023 as an alternative service for developers and platforms to offer fast and low-fee Bitcoin payments. The service relies on Blockstream’s infrastructure while giving users control over their private keys. While custodial solutions provide quick onboarding and convenience, they often sacrifice security and privacy. Noncustodial solutions prioritize security and privacy but require more technical and operational resources.
Greenlight takes a different approach by splitting nodes into smaller components that operate independently. Based on Core Lightning, Greenlight allows users to perform all operations involving private keys on their own devices. The remaining node and operational needs are handled by Blockstream’s infrastructure. This design is similar to hardware wallets, where the user has a client interface and signer, while the wallet provider operates a Bitcoin node that connects to the network.
Blockstream has developed its signer using the Validating Lightning Signer project to ensure end-to-end verification. This means that only users can initiate operations involving their funds, and the infrastructure operator or anyone else with similar control or access cannot interfere. This design provides users with greater control and security over their Bitcoin transactions.
Relai, which was founded in 2020 and focuses solely on Bitcoin trading and custody, has seen significant success, generating over $300 million in trading volume over the past four years. The decision to onboard Lightning payments aligns with the trend of major exchanges seeking to improve their Bitcoin payment functionality. Coinbase, the largest exchange operator in the United States, announced in September 2023 that it would integrate Bitcoin Lightning payments into its platform. Coinbase CEO Brian Armstrong emphasized Bitcoin’s importance in the cryptocurrency ecosystem and highlighted the benefits of faster and cheaper BTC transactions.
In conclusion, Relai’s integration with Blockstream’s Greenlight solution will enable its users to access Lightning payment functionality. This integration allows for low-cost Bitcoin payments while maintaining control over private keys. The adoption of Lightning payments by Relai reflects the growing trend among major exchanges to enhance Bitcoin payment capabilities.