Steps to Set Up a Bitcoin Lightning Node on a Linux Server

 Install Bitcoin Core

Before setting up a Lightning Node, you need a fully synchronized Bitcoin Core node. If you haven’t installed Bitcoin Core, follow the previous guide to complete this step. Ensure that your Bitcoin Core node is fully synced with the blockchain, as this is required for the Lightning Node to function.

Download and Install LND (Lightning Network Daemon)

The Lightning Network Daemon (LND) by Lightning Labs is a popular choice for running a Lightning Node. First, download the latest release from GitHub:

wget https://github.com/lightningnetwork/lnd/releases/download/v0.15.0-beta/lnd-linux-amd64-v0.15.0-beta.tar.gz

Extract the downloaded files and move them to your system’s binary folder:

Configure LND

To configure your Lightning Node, create a configuration file for LND in the .lnd directory:

In this file, configure LND to connect with your Bitcoin Core node. Add the following basic configuration:

Save and close the file. Replace placeholders with your specific information, like your chosen alias and colors, and Bitcoin Core RPC credentials.

Start LND

You’ll need to unlock your wallet and may need to initialize it if this is the first time running LND. Follow the prompts to complete the setup.

Open Channels and Fund Your Node

To interact with the Lightning Network, open channels with other nodes. First, fund your node’s wallet and use the lncli command to open a channel:

This establishes a connection and opens a channel. Your Lightning Node can now send and receive payments through the Lightning Network.