HODL Invoices vs BOLT11 Invoices; A Comparison

Written by Oghenovo Usiwoma

Lightning is a second layer for Bitcoin that uses micropayment channels to scale the blockchain’s capability to conduct transactions more efficiently.

This layer consists of multiple nodes that can open and close payment channels with each other, without having to broadcast every transaction to the Bitcoin network. This way, Lightning can enable faster and cheaper transactions, while still maintaining the security and decentralization of Bitcoin.

A Lightning HODL invoice is a special type of Lightning invoice that allows the recipient to delay the settlement of the payment until they reveal a preimage (a secret piece of data) that matches a hash (a unique fingerprint) embedded in the invoice.

Follow this link to read more in detail on Oghenovo's comparison of Hodl invoices and Bolt11 invoices.