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BOLT-12 Support

## Problem Statement

The reliance on BOLT 11 for payment requests limits the Lightning Network's usability and privacy, requiring manual invoice generation for each transaction and exposing user information. Users and businesses require a more dynamic and confidential way to request and settle payments.

Who will benefit?

Lightning Network users seeking more privacy and control over their transactions. Businesses and service providers on the Lightning Network looking for efficient, dynamic billing mechanisms.

Benefits and risks

Benefits

  • Improved User Experience: Users can make and receive payments more easily, enhancing the overall user experience.Simplifies the payment process for complex or recurring transactions.
  • Improved Privacy: Offers and invoice requests minimize the amount of shared information, enhancing transaction privacy.
  • Greater Flexibility: Supports a wider range of payment scenarios, such as recurring payments and dynamic pricing.

Risks

  • Implementation Complexity: Adapting VLS to support BOLT 12 may require complex changes to the codebase.
  • Compatibility Issues: Ensuring that BOLT 12 features are compatible with existing Lightning Network services and wallets.
  • Adoption Curve: Requires users and services on the Lightning Network to adopt BOLT 12 for full benefits.

Proposed solution

Implement BOLT 12 support in VLS, allowing it to generate, manage, and validate offers, invoice requests, and invoices according to the new standards. This includes:

  • Updating VLS to handle BOLT 12's static QR codes and Onion Message-based communication.
  • Providing tools for users to generate offers and request invoices within the VLS framework.
  • Ensuring privacy and security are maintained in the new payment flows enabled by BOLT 12.

Examples

  • Recurring Payments: A user subscribes to a service with a monthly payment. VLS generates a BOLT 12 offer, allowing automatic renewal without manual invoice generation.
  • Conditional Payments: A merchant offers discounts based on payment timing or quantity. VLS dynamically adjusts the invoice based on the offer's conditions.
  • ATM Withdrawals: Users can withdraw fiat as bitcoin over Lightning without generating a new invoice each time.
  • Streaming Tips: Content creators can receive tips via a static QR code, without interrupting their stream to generate invoices.

Priority/Severity

- [X] High (This will bring a huge increase in performance/productivity/usability/legislative cover)
- [] Medium (This will bring a good increase in performance/productivity/usability)
- [ ] Low (anything else e.g., trivial, minor improvements)
Edited by Jack Ronaldi