How to Use Dry Contact USDC: A Comprehensive Guide76

Introduction

Dry contact USDC refers to a method of transferring USDC (USD Coin) over the Lightning Network without the need for a Lightning channel. This can be useful in situations where one party does not have a Lightning channel open or does not want to pay the fees associated with opening one. In this guide, we will provide a step-by-step explanation of how to use dry contact USDC.

Understanding Dry Contact USDC

Dry contact USDC operates on a "pay-to-pubkey" basis, which means that you send USDC to a specific public key rather than to a Lightning invoice. This allows for greater flexibility compared to traditional Lightning payments, which require the recipient to create an invoice before the sender can send funds.

Step-by-Step Guide to Using Dry Contact USDC

1. Obtain a USDC Address:

You will need a USDC address to receive dry contact USDC. This address can be generated using a Lightning wallet that supports dry contact payments, such as Muun or Phoenix.

2. Obtain the Recipient's Public Key:

You will need to obtain the public key of the person you are sending the USDC to. This can be done by asking them to share their public key or by scanning their QR code.

3. Send USDC:

Using your Lightning wallet, navigate to the payment section and select the option to send dry contact USDC. Enter the recipient's public key and the amount you wish to send. Confirm the transaction and pay the associated fees.

4. Receive USDC:

The recipient will receive the USDC in their Lightning wallet. They can then withdraw the funds to their desired bank account or exchange them for other cryptocurrencies.

Advantages of Dry Contact USDC

● No Channel Required: Dry contact USDC eliminates the need for both the sender and the recipient to have Lightning channels open.

● Low Fees: The fees associated with dry contact USDC payments are typically lower than those of traditional Lightning payments.

● Flexibility: Dry contact USDC can be sent to any public key, not just to Lightning invoices.

● Convenience: Dry contact USDC offers a convenient way to send USDC over the Lightning Network, even to users who are new to the technology.

Limitations of Dry Contact USDC

● Limited Network Effect: Dry contact USDC is not as widely supported as traditional Lightning payments, which can limit its usage.

● Potential for Error: Since dry contact USDC payments are sent directly to a public key, there is a higher risk of error compared to using Lightning invoices.

Conclusion

Dry contact USDC is a useful tool for transferring USDC over the Lightning Network without the need for a Lightning channel. It offers lower fees, increased flexibility, and convenience compared to traditional Lightning payments. However, it is important to be aware of its limitations, such as its limited network effect and potential for error. With careful usage, dry contact USDC can be a valuable addition to the Lightning ecosystem.

2024-11-12

Previous：Ethereum Difficulty Bomb: A Comprehensive Analysis and Prediction

Next：Which is More Valuable: Ripple vs. Bitcoin?