Keychat on Nostr: In Spark Wallet, your BTC is stored as Spark BTC. You can use the Spark operator’s ...

In Spark Wallet, your BTC is stored as Spark BTC.
You can use the Spark operator’s Lightning Network gateway to receive and send Lightning payments.
Any Lightning payment you receive is automatically converted into Spark BTC for storage.

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The security of off-chain BTC is not uniform—counterparty risk increases in the following order: Lightning-Channel BTC → Ark BTC → Spark BTC → Liquid BTC → Cashu BTC → Custodial BTC.

The Lightning Network is a channel layer plus a routing layer. If you run your own channel, the routing layer lets you settle payments directly.

For the other five off-chain wallets, the operator shares its own Lightning channels with users, allowing them to send and receive Lightning payments.

Liquid example

• Paying — your wallet sends the same amount of L-BTC, and the operator pays the invoice through its channels.
• Receiving — the operator first receives BTC over Lightning, then sends you the equivalent L-BTC.

Liquid, Spark, and Ark can make users’ sending and receiving of Lightning payments atomic.

Lightning is the transport network—other off-chain solutions plug in as special nodes.