Glossary
>
L
>
Lightning-as-a-Service (LaaS)

Lightning-as-a-Service (LaaS)

Lightning-as-a-Service, or LaaS, is a specialized service model where third-party providers offer infrastructure and solutions related to Bitcoin's Lightning Network to businesses and developers.

An example of how a LaaS (in this case Greenlight) operates by providing non-custodial Lightning node management.

Instead of struggling with the technical aspects of setting up and managing Lightning nodes, channels, and liquidity, businesses can rely on LaaS providers to handle these complexities. This lets clients incorporate Lightning's fast, secure, and cost-effective transaction capabilities more easily into their platforms or applications. This may encompass uses anywhere from facilitating microtransactions to powering decentralized applications.

Using a LaaS provider reduces upfront investment, minimizes risk, utilizes modern Lightning tech, and includes 24/7 system maintenance. However, clients may be bound to their LaaS provider for extended contract durations since they do not own the Lightning systems.