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Creating your first Lightning node

Installing LND with Umbrel

Set up Your First Lightning Node

Installing LND with Umbrel

Now that we've reviewed the basics of Lightning and the solutions available, it's time to get down to business. To take this course, you'll need a Bitcoin node synchronized to Umbrel. This LNP202 training course is a continuation of BTC 202; if you don't yet have a Bitcoin node, I invite you to take this other training course before coming back here once your node has been synchronized. I strongly recommend that you consult it, as I won't go into detail about its operation, configuration and security measures.
In this first chapter, we'll look at how to install LND on your Umbrel. The way Umbrel works makes this step very simple, since all you have to do is install an application.
From the home page, open the App Store at the bottom of the interface.
In the search bar, enter Lightning Node, then click on the application.
Then click on the Install button to launch the installation.
From the home page, click on the application to open it, then select Setup a new node.
You are given a 24-word mnemonic phrase. Keep it in a safe place. We'll look in more detail in the next chapter at how to regain access to your Lightning node (this is a much more complex process than for a simple Bitcoin wallet), but remember for now that this phrase plays a crucial role and must be saved with the utmost care.
Save this phrase in the same way as a conventional mnemonic phrase: on a physical medium (paper or metal) stored in a secure location, then click on the NEXT button.
Then enter the words of your sentence to check that you've written them down correctly.
A warning message will remind you that the application is in beta version and that Lightning Network remains an experimental technology. Obviously, never commit amounts to your Lightning node that you're not prepared to lose.
You will then arrive at your Lightning node's main interface. On the left, you'll find your Bitcoin onchain wallet hosted on your node. This is the one generated from the 24-word phrase you've just saved.
In the center, you'll find your Lightning wallet. It actually represents your outbound liquidity, i.e. the bitcoins you own within your Lightning channels.
On the right, you will see several important pieces of information about your node:
  • The number of connections and open channels;
  • Your total outbound liquidity, i.e. what you can theoretically spend on Lightning;
  • Your total inbound liquidity, i.e. what you can theoretically receive on Lightning.
Let's start by customizing our node. Click on the three small dots at the top right of the interface, then on Advanced Settings. In the Personalization submenu, you can define a public name for your node (avoid using your real name) and choose its color.
Then click on the green SAVE AND RESTART button to restart your node and apply these changes.
Your Lightning node is now ready to open its first channels for making payments. But first, let's take a look at how to protect your sats!
Quiz
Quiz1/5
What can be customized in the Lightning node's advanced settings?