Bitcoin School Kenya Diploma English Version 2024
  • PREFACE
  • Table of Content
  • Chapter 1: Why Do We Need Money?
    • 1.0 Introduction
    • 1.1 Why We Need Money
  • Chapter 2: What is Money?
    • 2.0 Introduction
    • 2.1 Definition of Money
    • 2.2 Why is Money Important?
    • 2.3 Functions of Money
    • 2.4 Properties of Money
    • 2.5 Types of Money
    • 2.6 The Psychology of Money
  • Chapter 3: The History of Money
    • 3.0 Introduction
    • 3.1 Evolution from Barter to Modern Currency
    • 3.2 Digital Currency Revolution
  • Chapter 4: What is Fiat Money and Who Controls it?
    • 4.0 Introduction
    • 4.1 Brief History of Fiat Money
    • 4.2 Advantages of Fiat Money
    • 4.3 Disadvantages of Fiat Money
    • 4.4 Commodity vs Fiat money
    • 4.5 Fractional Reserve Banking: A System Fueled by Debt
    • 4.6 Mechanism of Fractional Reserve Banking
    • 4.7 Impact on Money Supply and Debt
    • 4.8 Role of Central Banks
    • 4.9 Who Controls the Fiat System and Their Benefits
  • Chapter 5: How Fiat Problems Lead to Bitcoin
    • 5.0 Introduction
    • 5.1 Inflation
    • 5.2 Causes of Inflation
    • 5.3 Effects of inflation on purchasing power
    • 5.4 Global Debt Burden and Social Inequality
    • 5.5 Consequences of global debt
    • 5.6 Consequences of social inequality
    • 5.7 The Cypherpunks and Decentralization
    • 5.8 Key Cypherpunks
    • 5.9 Motivation for Decentralization
    • 5.10 An Orwellian Future
    • 5.11 Key Innovations by Cypherpunks
    • 5.12 Centralized vs Decentralized Systems
    • 5.13 Advantages of CBDCs
    • 5.14 Disadvantages of CBDCs
  • Chapter 6: An Introduction to Bitcoin
    • 6.0 Introduction
    • 6.1 How Does Bitcoin Work? A simplified overview
    • 6.2 Why Bitcoin Matters
    • 6.3 The Players of the Game in the Bitcoin Ecosystem
    • 6.4 Key Characteristics of Bitcoin
    • 6.5 Advantages of Bitcoin
    • 6.6 Bitcoin as Sound Money
    • 6.7 Bitcoin Self Custody
  • Chapter 7: How to Use Bitcoin
    • 7.0 Introduction
    • 7.1 Acquiring and Exchanging Bitcoin
    • 7.2 Peer-to-Peer In Person
    • 7.3 Peer-to-Peer Online
    • 7.4 Centralized Exchanges
    • 7.5 Introduction to Bitcoin Wallets
    • 7.6 Self-Custodial vs Custodial Wallets
    • 7.7 Different Types of Bitcoin Wallets
    • 7.8 Open Source vs. Closed Source
    • 7.9 Key Considerations When Choosing a Bitcoin Wallet
  • 7.10 Setting up a Mobile Bitcoin Wallet
  • 7.11 Receiving and Sending Transactions
  • 7.12 How a Bitcoin Transaction Works
  • 7.13 Saving in Bitcoin
  • 7.14 DYOR Don’t Trust, Verify
  • Chapter 8: Lightning Network and Advanced Usage
    • 8.0 Introduction
  • 8.1 The Lightning Network
  • 8.2 Different Types of Lightning Wallets
  • 8.3 Setting Up a Bitcoin Lightning Wallet
  • Chapter 9: An Introduction to the Technical Side of Bitcoin
    • 9.0 Introduction
  • 9.1 Characteristics of the Bitcoin Ledger
  • 9.2 Public and Private Keys: Security through Cryptography
  • 9.3 Sending a Bitcoin Transaction
  • 9.4 Key Concepts in Bitcoin's Technology
  • 9.5 Hashing Explanation
  • 9.6 The UTXO Model
  • 9.7 Acloser look at Bitcoin Nodes and Miners
  • Chapter 10: Why Bitcoin?
    • 10.1 Introduction
  • 10.2 Circular Economies and Bitcoin as a Medium of Exchange
  • 10.3 Bitcoin Circular Economy
  • THE END
    • Recommended Learning Resources on Bitcoin
  • Group 1
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8.3 Setting Up a Bitcoin Lightning Wallet

Previous8.2 Different Types of Lightning WalletsNext9.0 Introduction

Last updated 8 months ago

Learn Essential Steps

Objective: To guide users through the process of setting up a Bitcoin Lightning wallet for efficient transactions.

1. Download and Install:

  • Steps: Download the Lightning wallet application from the official website or app store.

  • Examples:

2. Create a Wallet:

  • Steps: Follow the wallet's setup instructions to generate a new wallet.

  • Backup: Securely back up the seed phrase or recovery key.

3. Funding Your Wallet:

  • Steps: Deposit Bitcoin into your Lightning wallet to start using the network.

  • Resources: Use a Bitcoin exchange or peer-to-peer platform to acquire Bitcoin.

4. Configuring Channels:

  • Steps: Open payment channels with other nodes to facilitate transactions.

  • Guides:

    • Channel Management with Eclair

Hands-On Activity: Lightning Wallet Relay Race

Engage in a Practical Activity

Objective: To simulate the experience of using the Lightning Network through a relay race activity.

1. Setup:

  • Participants: Assign roles to participants as nodes in the Lightning Network.

  • Tools: Use real or simulated Lightning wallets to conduct transactions.

2. Activity:

  • Relay Race: Participants send small amounts of Bitcoin through the Lightning Network, aiming to complete transactions as quickly as possible.

  • Timing: Measure the time taken for each transaction to pass through the network.

3. Debrief:

  • Discussion: Analyze the experience, highlighting the speed and efficiency of transactions.

  • Insights: Discuss the benefits of using the Lightning Network for fast and low-cost transactions.

Lightning Transactions

Explore the Transaction Process

Objective: To understand the process of sending and receiving transactions on the Lightning Network.

1. Sending Transactions:

  • Steps: Initiate a payment from your Lightning wallet to a recipient's wallet.

  • Verification: Confirm the transaction on the Lightning Network.

2. Receiving Transactions:

  • Steps: Share your payment request with the sender and wait for the transaction to be completed.

  • Confirmation: Check your wallet for receipt confirmation.

3. Benefits:

  • Speed: Transactions are processed almost instantly.

  • Cost: Significantly lower fees compared to on-chain Bitcoin transactions.

4. Resources:

  • Lightning Network Transaction Guide

  • How to Use Lightning Network

These sections cover the essential aspects of the Lightning Network, from its introduction and wallet types to practical activities and transactions.

Download LND
Install BlueWallet
Opening Channels with LND