Setting up a Bitcoin Full Node with a Lightning Network Node

Setting Up a Bitcoin Full Node with a Lightning Node

This tutorial explains how to set up a Bitcoin full node with a Lightning node on your server. Running a full node contributes to the strength and security of the Bitcoin network, and a Lightning node enables faster, cheaper transactions.

The most important requirement for implementation is a basic understanding of the Linux command line.

Requirements

To set up a Bitcoin full node and a Lightning node, you need a server with the following characteristics:

• Sufficient storage (about 500 GB)
• Good CPU power
• A stable internet connection

The RS 2000 G8 SSD from netcup meets these requirements.

Step 1 - Ordering the VPS

Order the RS 2000 G8 SSD from netcup if you haven't done so already. Existing customers can add the product easily and quickly.

Step 2 - Basic configuration of the server

After provisioning the server and logging in with the username root and the password sent by email, update the basic configuration of the server.

1. Change the root password with passwd.
2. Download the current security updates with apt-get update && apt-get upgrade -y.

Step 3 - Download and install Bitcoin Core

1. Download the latest Bitcoin Core release from the official website.

   wget https://bitcoincore.org/bin/bitcoin-core-24.0.1/bitcoin-24.0.1-x86_64-linux-gnu.tar.gz
   

2. Extract the downloaded archive.

   tar xvf bitcoin-24.0.1-x86_64-linux-gnu.tar.gz
   

3. Change to the extracted directory.

   cd bitcoin-24.0.1
   

4. Add the binaries to your path.

   nano $HOME/.bashrc
   

   Go to the end of the file and paste the following:

   export PATH="$HOME/bitcoin-24.0.1/bin/:$PATH"
   

   Save with Ctrl+O and exit with Ctrl+X.

   Reload the changes with:

   source $HOME/.bashrc
   

5. Create a default bitcoin.conf file.

   mkdir $HOME/.bitcoin
   nano $HOME/.bitcoin/bitcoin.conf
   

   Paste the following:

   server=1
   daemon=1
   zmqpubrawblock=tcp://127.0.0.1:28332
   zmqpubrawtx=tcp://127.0.0.1:28333
   

   Save with Ctrl+O and exit with Ctrl+X.

6. Start Bitcoin Core by typing bitcoind in the terminal.

   bitcoind
   

At this point, Bitcoin Core should start synchronizing with the network. It will download and verify the entire blockchain, which can take several hours to a few days.

7. Track the progress of your Bitcoin node synchronization.

   tail -f $HOME/.bitcoin/debug.log
   

   When the Bitcoin node is done synchronizing, you can continue with the next steps.

Step 4 - Install and configure LND (Lightning Network Daemon)

1. Download the latest release of LND from the official GitHub repository.

   wget https://github.com/lightningnetwork/lnd/releases/download/v0.16.0-beta/lnd-linux-amd64-v0.16.0-beta.tar.gz
   

2. Extract the downloaded archive.

   tar xvf lnd-linux-amd64-v0.16.0-beta.tar.gz
   

3. Change to the extracted directory.

   cd lnd-linux-amd64-v0.16.0-beta.tar.gz
   

4. Move the LND binaries to the ~/bin directory (create the directory if it doesn't exist).

   mkdir -p $HOME/bin
   mv lnd lncli $HOME/bin
   

5. Add the LND binaries to your path.

   nano $HOME/.bashrc
   

   Go to the end of the file and paste the following:

   export PATH="$HOME/bin/:$PATH"
   

   Save with Ctrl+O and exit with Ctrl+X.

   Reload the changes with:

   source $HOME/.bashrc
   

6. Create a default lnd.conf file.

   mkdir $HOME/.lnd
   nano $HOME/.lnd/lnd.conf
   

   Paste the following:

   [Application Options]
   debuglevel=info
   maxpendingchannels=10
   alias=YourNodeAlias
   color=#68F442
   listen=localhost
   
   [Bitcoin]
   bitcoin.active=true
   bitcoin.mainnet=true
   bitcoin.node=bitcoind
   
   
   

   Save with Ctrl+O and exit with Ctrl+X.

   Replace YourNodeAlias with a custom alias for your node.

7. Start LND with the following command:

   lnd
   

8. Create a wallet using lncli create.

After setting up your Bitcoin full node and Lightning network node, open another terminal window and create a wallet using the following command:

lncli create

Follow the steps described by the command-line interface to create a new wallet, including setting a wallet password, generating a seed, and backing up your seed phrase.

Congratulations! You now have a functioning Bitcoin full node with a Lightning network node and a newly created wallet.

For more information and basic usage of LND, check out the official LND documentation.

Remember to keep your seed phrase secure and make sure to have a backup, as losing it will result in the loss of your funds. Also, keep your server secure and up-to-date to ensure the safety of your Bitcoin full node and Lightning network node.

With your new setup, you can now participate in the Bitcoin and Lightning network ecosystems, send and receive transactions, and contribute to the overall health and decentralization of the network. Enjoy exploring the world of cryptocurrencies and the Lightning Network!

Now you have a Bitcoin full node with a Lightning node up and running. You can use lncli to interact with your LND node, and you can connect your Lightning wallet to your node for sending and receiving payments.

Licence

MIT

Copyright (c) 2021 netcup

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The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.

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