2021-12-12 · 1 min read
Hosted Channels (HC) are a new channel type that aren't backed by an on-chain HTLC. The Host side holds the money and the Client side trusts the host.
HCs aren't enforceable on-chain but can still be advertised to the LN. They're more capital efficient and other nodes can use the public HCs.
Looks like Simple Bitcoin Wallet is using Hosted Channels for first-time inbound receive?