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BTC Wallet of Satoshi switches to self-managed Bitcoin wallets and phases out custody services
Wallet of Satoshi, a well-known Bitcoin Lightning Internet wallet provider, announced that it will strategically shift from its original custody service model to a self-managed framework. Previously, the company directly held users 'private keys; now it will let users control their own bitcoins and private keys, marking a major change in the way the wallet operates.
Timeline and regional deployment
This transformation has been underway in multiple key markets. In the United States, the European Union, Australia and New Zealand, the Lightning online invoice generation feature of older wallets has been stopped. The rest of the region is expected to follow up before the end of September. This phased approach allows existing users to gradually adapt while still sending and receiving funds through existing Lightning network addresses.
Users can migrate their balances to the new self-managed wallet before June 30, 2027. This generous deadline provides users with enough time to transition smoothly to ensure that funds are not held up during the migration.
Background and Industry Environment
Wallet of Satoshi's decision is consistent with the overall trend of the cryptocurrency industry towards self-custody, which stems from users 'growing awareness of the risks of centralized management of digital assets. The collapse of several large custody exchanges has highlighted the importance of users holding their own private keys. Moving to a self-managed model is Wallet of Satoshi's response to users 'needs for greater security and control.
The company took this step back in May this year, switching its in-store point-of-sale (POS) service to a self-hosted model. This latest move extends this concept to its core wallet services, further strengthening its commitment to user sovereignty.
What it means for users
For existing Wallet of Satoshi users, this transition means they need to set up a new wallet and transfer funds. The entire process is designed to be relatively simple, but users need to take action before the 2027 deadline. Users unfamiliar with self-hosting may need to learn best practices for private key custody, such as using a hardware wallet or taking secure backups.
This shift has also had an impact on the Lightning Network ecosystem. As more wallets adopt self-custody, the network has become more decentralized, which is consistent with Bitcoin's original vision as a peer-to-peer electronic cash system. Users 'increased confidence in the security of funds is expected to further promote innovation and adoption.
Conclusion
Wallet of Satoshi's shift to a self-managed model is an important milestone in the development of Bitcoin wallet services. By giving users full control of their private keys, the company is aligned with the core principles of decentralization and user empowerment. Phased deployment and long migration period reflect the thoughtful arrangements for this transformation, ensuring that users have sufficient time and necessary support to safely complete the switch.
Frequently Asked Questions
Question: What are the main differences between the old Wallet of Satoshi service and the new service?
The old version of the service belonged to the escrow model, where Wallet of Satoshi held the user's private key and Bitcoin. The new version of the service is self-managed, and users have full control of their private keys and funds.
Q: When will users need to migrate funds?
Users can transfer balances from old wallets to new self-managed wallets before June 30, 2027. Until then, they can still continue to send and receive funds through their existing Lightning network addresses.
Q: Does the new wallet support both Lightning Network and on-chain Bitcoin transactions?
Yes, the new self-managed wallet will support both Lightning Network and Bitcoin chain transactions, giving users more flexibility when managing and trading Bitcoin.
