Bitcoin Wallet adds feature to save on transactions and Lightning

The new version of Electrum wallet, 4.5, includes very useful functionality for those who use it to make transactions on the Lightning network. Electrum now allows you to send the proceeds of a transaction to a Lightning channel with a single operation.

When making a transaction in Bitcoin, there are usually “returns” that the issuer receives in their wallet automatically, sometimes without realizing it. For example, if you have to send 0.5 bitcoins (BTC) and use two UTXOs (unspent transactions) of 0.3 BTC each, you will receive 0.1 BTC leftover via a return transaction.

With the new Electrum feature, the user can choose to send that «toxic change» or “toxic change” to a Lightning channel without executing an extra transaction. Thus, you save the cost of carrying out an on-chain transaction to fund the channel, which will then allow you to make instant and low-cost payments, as allowed by the Lightning network.

Submarine swap Electrum.
In blue, the submarine swap to send the proceeds of a transaction to Lightning. Source: X @ElectrumWallet.

To offer its new function, Electrum uses submarine swaps. A submarine swap is a technique used on the Lightning network to perform atomic swaps between on-chain and off-chain transactions, to move funds from the Bitcoin main chain to the Lightning network and vice versa.

Other new features in Electrum

The latest Electrum update, version 4.5.3, also brings a series of changes that seek to facilitate the user experience when storing and managing their BTC with this wallet. Among the most notable features is the new presentation of transaction sizes as “vbytes” and rates as “sat/vbyte”, for greater clarity when interacting with transactions.

Version 4.5.3 also addresses previous issues, such as a regression in the wizard that prevented the use of hardware wallets as cosigners for new wallets. In addition, the detection of invoices paid on-chain was improved.

Electrum wallet desktop.
Electrum, in its desktop version. Source: Screenshot.

On the UI front, the desktop version introduces essential “add server as bookmark” functionality, to further simplify server management for users. In addition, UI fixes were made to both the desktop and Android versions, mainly on issues of accessibility and stability of the application.

Finally, hardware wallet users, especially those of Trezor, will benefit from the addition of support for SLIP-19 proof of ownership in Standard_Wallets wallets. This improvement, along with a fix for a transaction signing regression for Trezor One in multi-signature wallets, strengthens the security and versatility of Electrum.

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