See here:
quoting naddr1qq…c4f2There seems to be a bit of confusion going around about exactly what #AlbyHub is, and what it does, what use-cases it does and does not fit into. As someone who is using Alby Hub on a daily basis and have been quite happy with it, I thought I might be able to shed some light on the matter from the perspective of a user. #Alby, please correct me if I get anything wrong in this article.
Note: I am not in any way affiliated with Alby, except by being a satisfied user of their software, and have not been paid to write this article.
I can understand the confusion surrounding Alby Hub, because it is not just one thing that works the same for all users of the product. There are various different ways you can have it set up, and while the end result is mostly the same functionality, the steps to get there are different for each version. There is the cloud (someone else’s computer) version, the desktop version, the docker version, and the node (Start9 or Umbrel) package version. In some of these versions, Alby Hub is acting as a standalone lightning node, and in others it is merely a front-end that gives your existing node additional features, such as segregated wallets, but you must have an LND instance already established that it is running alongside.
Cloud
This service is a standalone lightning node running in the cloud and online 24⁄7. For that reason, it can be very attractive to users who may not be able to run their own node at home, or who do not have reliable power or internet services.
It is still considered self-custodial, even though it is running on Alby’s servers, because you hold your own keys.
Since this version of Alby Hub is a standalone lightning node, this means that all of your channel setup and liquidity is managed inside of your cloud-hosted Alby Hub.
My assumption is that this lightning node is reaching out to a #Bitcoin full node that Alby runs for all on-chain data and broadcasting channel-opens and closes.
At the time of writing, the cost for this cloud-hosted node is 21,000 sats a month. You get some additional features by paying for this service that other versions of Alby Hub lack, though. You can have a custom lightning address, instead of just an “UserName@getalby.com” address. You also get priority customer support with an in-app live chat, and access to the “Buzz” community that other users of Alby Hub do not get access to.
There are other options for a cloud-hosted Alby Hub other than directly from Alby, as well. For instance, you can host your Alby Hub on Render. These alternative hosting options may have a lower cost associated with them, but you will not have access to the additional features, such as a custom lightning address or priority customer support.
Desktop
The desktop client is also a standalone node, but this time running on your own Windows, Mac, or Linux desktop computer. You should only use this option on a computer you keep always online.
This option is completely free, but you are responsible to keep your Alby Hub online, or else you will not be able to send and receive transactions on the go using a mobile wallet connected to your Alby Hub, such as Alby Go or Zeus. Moreover, your only option for a lightning address is “UserName@getalby.com” and you don’t receive priority customer support.
As with Alby running in the cloud, since you are not running a full Bitcoin node, my assumption is that Alby Hub is reaching out to Alby’s own full node for all on-chain data and for broadcasting channel-opens and closes.
Docker
You can also run Alby Hub on any local device or remote VPS that supports Docker. This would also be a standalone node, so all the rules of running on your desktop apply. You should only use this option on a device that is online 24⁄7.
Start9 & Umbrel
Here is where we diverge from Alby Hub being its own standalone node. Instead, Alby Hub is installed on your #Start9 or #Umbrel, which must already be running an instance of LND as the lightning node. LND, in turn, requires you to be running Bitcoin Core or other compatible Bitcoin implementation.
In this case, Alby Hub is acting as an alternative front-end for your existing lightning node, and giving it extra capabilities. It would be similar to Thunderhub or Ride-the-Lightning.
In my opinion, so long as you have reliable power and internet service, this is the best option available. Not only will you possess your own keys, but you will be running the software on your own device, dedicated to the task of hosting your Bitcoin software stack, and not your general computing needs. Moreover, Alby Hub will be reaching out to your own Bitcoin full node for all on-chain needs, including broadcasting channel-opens and closes.
All Versions
Now that you have one of the above versions of Alby Hub up and running, with channels open using Alby Hub as a standalone node, or as a front-end for your existing LND node on your Start9 or Umbrel, what can you do with it? What makes it any different than just using Zeus to connect to your node via LNDHub or Lightning Terminal? Plenty!
At the basic level, the default wallet in Alby Hub will utilize your entire node’s outbound liquidity as its balance. You can purchase lightning channels from liquidity providers very easily, and purchase Bitcoin using a bank transfer or credit card directly within Alby Hub, so you have both inbound and outbound liquidity.
You can then connect various services to have access to this main wallet, such as Nostr clients that support #NostrWalletConnect, or Alby’s BuzzPay PoS terminal, or games like Paper Scissors HODL or Zappy Bird, and of course Alby’s browser extension or Alby Go mobile wallet. Don’t want a service to have unlimited access to your node’s balance? You can set it a budget, and even set up an isolated balance for just that single application to have access to.
If you connect your wallet with your Alby account, you will gain the benefit of having your Alby lightning address connected to your Alby Hub wallet, so you can receive zaps directly to your self-custody node.
There are a couple ways you can connect your Alby Hub wallet to a mobile wallet app. The first is using LNDHub with Zeus. I found the most success by doing this through my Alby account after connecting it to my Alby Hub wallet. It is my understanding that Zeus is also working on integrating Nostr Wallet Connect, so that will be an even easier option for using it as your mobile wallet. Note, though, this is NOT connecting to your self-custodial Zeus wallet using their node-on-a-phone option, if you have that set up. It is a remote connection to your Alby Hub node where Zeus is just a mobile interface. Your Zeus wallet’s self-custodial balance will be entirely separate from your Alby Hub wallet balance, and you must select the wallet balance/node you want to use prior to conducting a transaction.
Alby has also released Alby Go, which is a mobile wallet app with a very minimal interface that just works and uses Nostr Wallet Connect rather than LNDHub to connect to your node.
More interestingly, though, you can set up “Friends & Family” wallets that are separate from your main node balance and start with their own balance of 0 sats. Each of these wallet balances are tracked separately, though they use your node’s liquidity for transacting. This is similar to setting up individual wallets within a tool like LNBits or Lightning Terminal. However, I find that these wallets are far easier to set up and more versatile. Moreover, they can be connected to all of the same services previously mentioned via Nostr Wallet Connect, and they can each be connected with a separate Alby account so that each wallet has its own lightning address, without having to own a domain and set up reverse proxies or any of the more technical aspects of setting up lightning addresses for LNBits wallets.
This, in my opinion, is the “killer feature” of Alby Hub. It enables anyone who runs any of the above versions to quickly and easily be an Uncle Jim for their family, who have no interest in learning how to set up self-custody wallets. The only thing you need to do is make sure your lightning node always has enough outbound liquidity to cover their balances. If you fractionally reserve your own family members, you deserve what’s coming to you.