Strategy FAQ

Common questions about protocol selection, cost optimization, and multi-protocol workflows.

Protocol Selection

Which protocol should I use for a $50 payment?

Lightning is optimal for $50 payments:

Instant confirmation
Fee typically <$0.01
Requires recipient to have Lightning wallet

If recipient only has Bitcoin address, use Bitcoin with low-priority fee during off-peak hours.

When should I always use Bitcoin over Lightning?

Use Bitcoin when:

Amount exceeds $10,000 (security)
Recipient is offline or unknown
Maximum finality required
Long-term storage (cold wallet)
No Lightning wallet available

No. Nostr is useful for:

Inter-agent communication
Payment coordination (zaps)
Public announcements
Encrypted messaging (NIP-44)
Identity and reputation

Think of Nostr as the communication layer, not just social media.

Can I send Bitcoin without running a node?

Yes, using public APIs like mempool.space. However:

You trust the API for verification
Rate limits may apply
No privacy from the API provider

For production agents, consider running your own node or using multiple independent APIs.

Costs and Fees

How much does a Lightning payment cost?

Typical Lightning payment fees:

Base fee: 0-1 sat per hop
Proportional: 0-0.1% per hop
Average 3-hop payment: ~0.03% total

A $100 payment typically costs 3-30 sats ($0.003-$0.03).

Why are Bitcoin fees so variable?

Bitcoin fees depend on:

Network congestion (mempool size)
Your transaction size (number of inputs)
Your urgency (priority)
Time of week (lower on weekends)

Fees can range from $0.10 to $50+ for the same transaction.

Should I batch Bitcoin transactions?

Yes, if:

You have multiple outputs to send
None are time-critical
You control the sending

Batching saves 30-70% on fees by sharing overhead across outputs.

What’s the break-even point for Lightning vs Bitcoin?

Approximately:

<$10: Always Lightning (Bitcoin fees exceed value)
$10-$100: Lightning preferred
$100-$1,000: Depends on urgency
$1,000: Consider Bitcoin for finality

For high-volume agents (>20 tx/month), Lightning is almost always cheaper.

Timing and Scheduling

What’s the best time to send Bitcoin transactions?

Lowest fees typically:

Days: Saturday, Sunday
Hours: 2-6 AM UTC
Avoid: Tuesday-Wednesday, US business hours (14:00-22:00 UTC)

Does timing matter for Lightning?

Less than Bitcoin, but:

Higher success rates during off-peak
Channel liquidity varies by time
Some routing nodes have higher traffic periods

Should I schedule recurring payments?

Yes, for predictable operations:

UTXO consolidation: Sunday 2 AM UTC
Channel rebalancing: Daily during low-fee periods
Nostr posts: 14:00 UTC for global audience

Multi-Protocol

How do I combine Lightning and Nostr?

Common patterns:

Zaps (NIP-57): Pay Lightning with Nostr notification
Payment + DM: Send Lightning, confirm via encrypted Nostr
Streaming: Log payment stream to Nostr events

What if Lightning fails mid-payment?

Options:

Retry with different route (exclude failed nodes)
Split into smaller Multi-Path Payments
Fallback to Bitcoin (with user notification)
Queue for later retry

Never leave payments in undefined state—always resolve to success or confirmed failure.

Can I anchor Nostr content to Bitcoin?

Yes, using OP_RETURN:

Hash your Nostr event ID
Create Bitcoin tx with OP_RETURN containing hash
Event ID → SHA256 → OP_RETURN (32 bytes)

Cost: Regular Bitcoin transaction fee. Use only for high-value content.

How do I handle atomicity across protocols?

Options (from simple to complex):

Idempotent operations: Safe to retry
Saga pattern: Compensating transactions for rollback
Two-phase commit: Prepare all, then commit all

Most operations can use idempotency. Reserve sagas for complex workflows.

Risk and Security

What’s riskier: Bitcoin or Lightning?

Different risk profiles:

Bitcoin risks:

Address errors (permanent loss)
Fee overpayment
Slow confirmation
UTXO privacy leaks

Lightning risks:

Hot wallet exposure
Channel force-close costs
Stuck payments
Counterparty issues

Neither is inherently riskier—choose based on operation requirements.

How do I prevent sending to wrong address?

Verify prefix: bc1q (SegWit), bc1p (Taproot), etc.
Double-check checksum: Invalid addresses fail checksum
Test transaction: Send small amount first for new recipients
Multiple sources: Verify address from different channels

Should I use a single Lightning node for everything?

Not necessarily. Consider:

Single node: Simpler, all liquidity in one place
Multiple nodes: Privacy separation, fault tolerance

For most agents, a single well-managed node is sufficient.

How do I monitor for issues proactively?

Metrics collection: Block height, fees, channel balances
Alert thresholds: High fees, low liquidity, relay failures
Health checks: Regular protocol availability tests
Logging: All decisions and outcomes for audit

Operations

How much liquidity do I need in Lightning channels?

Depends on usage:

Payment volume: 2-3x your expected daily volume
Payment size: Largest expected single payment
Direction: Outbound for sending, inbound for receiving

Start with $500-$1000 capacity and scale based on actual usage.

How many Nostr relays should I use?

Minimum 3, recommended 5-10:

At least 2 from different operators
Mix of free and paid relays
Geographic distribution

More relays = better redundancy but more bandwidth.

What if my Bitcoin node falls behind?

Check disk space: Full disk stops sync
Check peers: Verify network connectivity
Verify chain: Ensure on correct chain
Wait or resync: May need to catch up

During sync, use public API as temporary fallback.

How do I handle protocol upgrades?

Monitor announcements: Follow protocol development
Test on testnet: Verify compatibility
Gradual rollout: Enable for small operations first
Fallback plan: Keep old version available

Performance

What response times should I expect?

Protocol	Operation	Typical Time
Bitcoin	API query	100-500ms
Bitcoin	TX broadcast	100-500ms
Bitcoin	1 confirmation	10-60 min
Lightning	Payment	100-2000ms
Lightning	Invoice creation	10-50ms
Nostr	Publish	50-500ms
Nostr	Query	100-1000ms

How do I optimize for speed?

Parallel queries: Fetch from multiple sources simultaneously
Connection reuse: Keep WebSocket/gRPC connections open
Local caching: Cache immutable data (tx details, block headers)
Route caching: Remember successful Lightning routes

What’s the maximum throughput for each protocol?

Protocol	Theoretical	Practical Limit
Bitcoin	~7 TPS	Limited by fees
Lightning	1M+ TPS	Channel capacity
Nostr	Unlimited	Relay limits

For high-volume agents, Lightning and Nostr scale effectively.

Machine-Readable Summary

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