Bitcoin wallet service provider BlueWallet has decided to shut down Lndhub.io, the Lightning Network node on the Bitcoin network used to store and trade satoshis (sats) the smallest denomination of the major cryptocurrency.
The Lightning Network is a layer 2 protocol on top of the Bitcoin protocol that handles micropayments between participating nodes to facilitate faster transactions. BlueWallet is one of the most popular Bitcoin Lightning wallets on the market. According to a blog post, BlueWallet revealed that while users will still be able to withdraw their sats, it will not be possible to create new wallets or refill existing wallets on LndHub nodes. They have until April 30, 2023, when the service shuts down completely.
The wallet provider revealed that it launched Lndhub as a "weekend experiment" on the Lightning Network. However, due to the emergence of numerous services offering more scalable solutions, BlueWallet decided to end the experiment as it had served its purpose.
BlueWallet also noted that the self-hosted Lndhub solution will continue to function and gain wallet support for interested individuals and entities. These people can connect their own LndHub from BlueWallet or other programs that support the LndHub API specification. It’s worth noting that Regulator BTC wallets are not affected by this change.
Additionally, BlueWallet said that while this development sounds like bad news, it is the platform’s way of supporting self-custody solutions, which is a good thing for Bitcoin users.
