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Bolt 12: The Next Evolution of the Lightning Network

Bolt 12, a groundbreaking upgrade to the Lightning Network is set to redefine how we interact with instant payments. No more juggling one-time invoices or missing out on seamless deals. Bolt 12, a groundbreaking upgrade to the Lightning Network is set to redefine how we interact with instant payments. No more juggling one-time invoices or missing out on seamless deals.

Bolt 12, a groundbreaking upgrade to the Lightning Network is set to redefine how we interact with instant payments. No more juggling one-time invoices or missing out on seamless deals. With Bolt 12, the future of frictionless, customizable bitcoin transactions is here.

What Is Bolt 12?

Bolt 12 is the latest innovation in the Lightning Network’s ecosystem, designed to solve long-standing limitations of its predecessor, Bolt 11. While Bolt 11 enabled instant, low-cost bitcoin transactions, it lacked flexibility for recurring payments and dynamic offers.

Bolt 12 introduces reusable invoices and offers, empowering users and businesses to create customizable payment experiences. Built on a robust specification called onion messages, Bolt 12 enhances privacy while streamlining transactions.

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Reusable Invoices: The Game-Changer

Bolt 12’s reusable invoices eliminate the need to generate a new invoice for every transaction. With Bolt 11, users had to create unique invoices each time, which became cumbersome for subscriptions or repeat payments.

Bolt 12 solves this by allowing static, reusable invoices linked to a single QR code or payment link. Businesses can now set up subscription models effortlessly, while customers enjoy one-click payments. This feature also reduces on-chain footprint, as fewer errors occur from expired invoices.

Offers: Personalizing Transactions

Bolt 12 takes flexibility to the next level. Unlike static invoices, Offers lets payers adjust payment amounts or add conditions after the invoice is created. Imagine paying for a service where the final cost depends on usage—like cloud storage or metered electricity.

With Bolt 12, providers can send an offer that allows customers to pay exactly what they owe, without needing a new invoice. This dynamic capability opens doors for microtransactions, pay-as-you-go models, and even instant refunds. For developers; Bolt 12 offers API-like functionality, enabling apps to automate complex payment workflows.

Privacy and Efficiency

Bolt 12 isn’t just about convenience—it’s a privacy powerhouse. Traditional Lightning payments expose metadata like payment amounts and recipient details through invoices.

Bolt 12 leverages onion routing, a method that encrypts payment paths—to hide sensitive data from intermediaries. Additionally, its reusable invoices reduce the number of public transactions linked to a user, making tracking harder for third parties.

Use Cases for Bolt 12

  • Tips and Donations: Donations and tips become effortless for charities and content creators through the ability to create reusable donation invoices.
  • Subscription Services/ Products: Subscription Services represented a major hurdle for Lightning Network businesses who needed to generate fresh invoices for each subscription payment. BOLT 12 enables businesses to generate one invoicing document for clients which streamlines payment process for subscription services.
  • E-commerce Pricing: The BOLT 12 offer system enables e-commerce businesses to use dynamic pricing through its adaptable pricing model. By enabling product price adjustments to market variations, payment requests maintain their relevance and up-to-date status.
  • Limited Time Offers and Ticketing: BOLT 12’s expiry function provides merchants with a tool to manage transactions that have targeted expiration dates such as event ticket buying periods. Merchants decide when invoices will expire so that payments cannot be processed when offers have completed.

Crucially, Bolt 12 is backward-compatible, meaning existing Lightning nodes can adopt it through upgrades. As wallets and services integrate Bolt 12, expect a surge in innovative use cases that blur the lines between bitcoin and everyday finance.

By addressing Bolt 11’s shortcomings, Bolt 12 paves the way for mainstream Lightning adoption. Think SaaS subscriptions, pay-per-use APIs, or even tipping creators across platforms without friction. Merchants can embed Bolt 12 offers into apps, emails, or NFC tags, turning any interaction into a payment opportunity.

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