Automated Spending Balance Backups for Alby Hub
Backups in self-custodial lightning wallets today
Lightning wallets have always posed a unique challenge for self-custodial users: backups. Unlike traditional bitcoin wallets, where you jot down a recovery phrase once and relax, lightning wallets require a more dynamic approach. Each transaction alters the state of your payment channels, and an outdated backup can lead to disastrous consequences—mistakenly broadcasting it is seen as a breach of trust, prompting your peer to close the channel.
The go-to method for lightning wallets and node operating systems today is Static Channel Backups (SCB). These backups don’t record each transaction but rather track the existence of channels themselves. In the event of data loss, SCBs allow you to request your peer to close the channel, returning your funds to your on-chain wallet. It’s functional, but not without its limitations. Relying on your peer for recovery adds friction, and the process involves closing channels, which can disrupt your setup.
Enter Dynamic Channel Backups with Alby Hub
Alby Hub is the easiest way to run your own lightning wallet. With one-click setup via Alby Cloud, an intuitive interface and seamless app integrations, Alby Hub makes lightning self-custody accessible to everyone. Connect to the Alby Browser Extension, to Alby Go and to a growing ecosystem of apps – all from a single, powerful Hub.
Now, with dynamic payment channel backups, we’re taking a major leap forward in convenience and reliability.
What Makes Dynamic Backups Special?
- Seamless Recovery: In case of data loss, you can recover your full spending balance effortlessly.
- No Peer Dependency: Unlike SCBs, dynamic backups let you retain your channels without relying on your channel partner to close them.
- Ongoing Protection: Say goodbye to the hassle of manually updating backup files with every channel change. Alby Hub handles it all for you.
How do the new channel backups work?
Behind the scenes, Alby operates a Versioned Storage Service (VSS) to securely store the channel states which are stored in your account and updated automatically every time you send or receive a payment on the lightning network. VSS is another innovation originating from the LDK developer community. These backups are encrypted with your 12-word recovery phrase to make sure only you have access.
You only need your 12-word recovery phrase to fully backup and recover all funds in a new Alby Hub.
Dynamic channel backups are now available for all Alby Cloud users starting a new Hub. In the coming months, existing Alby Cloud Hub users will also be able to migrate to this enhanced backup system. And for the DIY enthusiasts running Alby Hub on their own machines, we’re actively working on extending this feature to you as well—stay tuned!
Start your own Hub with Alby Cloud and enjoy a seamless bitcoin payment experience, all in your own control and even safer than before.