{"id":22855,"date":"2025-12-06T15:22:44","date_gmt":"2025-12-06T14:22:44","guid":{"rendered":"https:\/\/coincharge.io\/lightning-privacy-privacy-for-lightning-payments\/"},"modified":"2025-12-06T15:22:45","modified_gmt":"2025-12-06T14:22:45","slug":"lightning-privacy-privacy-for-lightning-payments","status":"publish","type":"post","link":"https:\/\/coincharge.io\/en\/lightning-privacy-privacy-for-lightning-payments\/","title":{"rendered":"Lightning Privacy – Privacy for Lightning payments"},"content":{"rendered":"
[vc_row][vc_column][vc_column_text css=”.vc_custom_1764688265590{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

How private are Lightning payments really?<\/strong><\/span><\/h1>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

The simple guide for normal Bitcoin users (payers & merchants)<\/h2>\n

The Bitcoin Lightning Network is usually praised for two things:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688315964{margin-left: 50px !important;}”]\n

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    it is extremely fast<\/strong><\/p>\n<\/li>\n

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    it is extremely cheap<\/strong><\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

    But many overlook perhaps the biggest advantage:<\/p>\n

    \n

    Lightning payments are surprisingly private – and completely automatic.<\/strong><\/p>\n<\/blockquote>\n

    And the best thing about it:
    You don’t need to know any technology, operate a node or carry out any complicated configuration.<\/p>\n

    In this article, you will find out in a simple and understandable way:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688344852{margin-left: 50px !important;}”]\n

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      Why Lightning is so much more private than Bitcoin on-chain<\/p>\n<\/li>\n

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      Why self-custody lightning wallets are a game changer<\/p>\n<\/li>\n

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      how payers AND merchants are protected<\/p>\n<\/li>\n

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      what a Lightning Service Provider (LSP) is (simply explained!)<\/p>\n<\/li>\n

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      what Lightning does well – and also where its limits lie<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]Let’s go![\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764688373743{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

      Why Lightning payments are automatically private<\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]Bitcoin on-chain is transparent.
      Any trader can theoretically see:[\/vc_column_text][vc_column_text css=”.vc_custom_1764688407445{margin-left: 50px !important;}”]\n
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        how much Bitcoin you own<\/p>\n<\/li>\n

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        what sources your money comes from<\/p>\n<\/li>\n

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        which transactions you have made before<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

        It’s like showing your complete bank statement every time you go shopping.<\/p>\n

        Lightning works completely differently.<\/p>\n

        \u2714 Lightning payments do not<\/strong> run via the blockchain<\/h3>\n

        They take place off-chain<\/em>.
        There are:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688449330{margin-left: 50px !important;}”]\n

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          No entries in the blockchain<\/p>\n<\/li>\n

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          no addresses<\/p>\n<\/li>\n

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          no UTXOs<\/p>\n<\/li>\n

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          No permanent trace<\/p>\n<\/li>\n

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          No publicly visible amounts<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

          This makes Lightning like digital cash<\/strong>:<\/p>\n

          \n

          You pay – and the information disappears again immediately.<\/em><\/p>\n<\/blockquote>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764688493628{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

          Lightning protects the payer (sender)<\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]Lightning has become particularly easy for normal users because almost all modern Lightning wallets are self-custodial<\/strong>:[\/vc_column_text][vc_column_text css=”.vc_custom_1764688530201{margin-left: 50px !important;}”]\n
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            Phoenix<\/p>\n<\/li>\n

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            Breez<\/p>\n<\/li>\n

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            Mutiny<\/p>\n<\/li>\n

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            Zeus (with LSP)<\/p>\n<\/li>\n

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            Alby<\/p>\n<\/li>\n

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            Wallet of Satoshi (new self-custody version)<\/p>\n<\/li>\n

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            Blink (still custodial, self-custody in progress)<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

            This applies:<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

            \u2714 1. you leave no on-chain traces<\/h3>\n

            You do not open any channels.
            You do not close any channels.
            Everything is done by the wallet provider or the LSP in the background.<\/p>\n

            \u27a1\ufe0f You do not appear in the blockchain data traffic.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

            \u2714 2. no registration – no identity data<\/h3>\n

            You don’t have to register or enter any personal data:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688612305{margin-left: 50px !important;}”]\n

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              No e-mail<\/p>\n<\/li>\n

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              No telephone number<\/p>\n<\/li>\n

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              No KYC<\/p>\n<\/li>\n

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              No account<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

              \n

              You are simply you – without a login, without a profile, without data traces.<\/p>\n<\/blockquote>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

              \u2714 3. the merchant does NOT see your Bitcoin assets<\/h3>\n

              With on-chain payments, a merchant sees your entire wallet history.<\/p>\n

              With Lightning, he sees:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688672023{margin-left: 50px !important;}”]\n

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                the amount<\/p>\n<\/li>\n

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                the time<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

                And NOTHING else.<\/p>\n

                Neither:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688702855{margin-left: 50px !important;}”]\n

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                  your coins<\/p>\n<\/li>\n

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                  your history<\/p>\n<\/li>\n

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                  your origin<\/p>\n<\/li>\n

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                  your future payments<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

                  \u27a1\ufe0f Lightning protects your privacy automatically – without any effort.<\/strong><\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764688745883{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

                  Lightning also protects the retailer (recipient)<\/span><\/h2>\n

                  <\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

                  Not only payers benefit – retailers do too.<\/p>\n

                  A merchant who receives Lightning payments also remains anonymous:<\/p>\n

                  \u2714 1. he does NOT show the customer his wallet history<\/h3>\n

                  A payer sees:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688795654{margin-left: 50px !important;}”]\n

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                    no addresses<\/p>\n<\/li>\n

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                    no UTXOs<\/p>\n<\/li>\n

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                    No sales history<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

                    \u2714 2. no separate node required<\/h3>\n

                    Traders used to have to:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688840862{margin-left: 50px !important;}”]\n

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                      operate a Lightning Node<\/p>\n<\/li>\n

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                      Open channels<\/p>\n<\/li>\n

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                      Manage liquidity<\/p>\n<\/li>\n

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                      Guarantee 24\/7 uptime<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]Today, this is done by a Lightning Service Provider (LSP<\/strong> ).
                      retailers simply use it:[\/vc_column_text][vc_column_text css=”.vc_custom_1764688893234{margin-left: 50px !important;}”]\n

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                        BTCPay Server + LSP<\/p>\n<\/li>\n

                      • Coinsnap<\/li>\n
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                        Breez POS<\/p>\n<\/li>\n

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                        Alby Hub<\/p>\n<\/li>\n

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                        Zeus Merchant<\/p>\n<\/li>\n

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                        or any self-custody wallet<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

                        \u2714 Dealers do NOT have to do anything technical<\/h3>\n

                        It works like normal payment – simple and private.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764688940277{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

                        What is a Lightning Service Provider (LSP)?<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

                        An LSP<\/strong> is like an “infrastructure service provider” in the background.<\/p>\n

                        It ensures that your Lightning Wallet:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764688974578{margin-left: 50px !important;}”]\n

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                          is always connected to the network<\/p>\n<\/li>\n

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                          always has sufficient liquidity<\/p>\n<\/li>\n

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                          Payments arrive reliably<\/p>\n<\/li>\n

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                          everything works automatically<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]You yourself:[\/vc_column_text][vc_column_text css=”.vc_custom_1764689001534{margin-left: 50px !important;}”]\n

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                            hold the private keys<\/p>\n<\/li>\n

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                            control your money<\/p>\n<\/li>\n

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                            do not need to understand technology<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

                            One sentence that explains everything:<\/p>\n

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                            An LSP makes Lightning possible – but he doesn’t know who you are.<\/strong><\/p>\n<\/blockquote>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764689042424{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

                            Disadvantage: Large Lightning Service Providers lead to centralization<\/span><\/h2>\n

                            <\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

                            For it to work so easily, Lightning needs large nodes that are very reliable.<\/p>\n

                            This leads to a disadvantage:<\/p>\n

                            \u2757 A few large LSPs operate a large part of the Lightning Network.<\/h3>\n

                            This means:<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764689070474{margin-left: 50px !important;}”]\n

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                              the network is not as decentralized as the Bitcoin blockchain<\/p>\n<\/li>\n

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                              individual LSPs could see a lot of technical data (but no identities)<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

                              BUT:<\/p>\n

                              \u2714 For users, this means:<\/h3>\n

                              more privacy, less effort, no node management.<\/strong><\/p>\n

                              The reality is:<\/p>\n

                              \n

                              A little centralization at the LSPs leads to much more privacy for normal users.<\/em><\/p>\n<\/blockquote>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764689120609{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

                              Lightning Privacy: It’s that simple for everyday life<\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764089306904{margin-left: 50px !important;}”]\n
                                \n
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                                Timing correlation possible<\/p>\n<\/li>\n

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                                Large payments are often split<\/p>\n<\/li>\n

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                                Centralized LSPs = more routing power<\/p>\n<\/li>\n

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                                IP analysis possible without Tor\/VPN<\/p>\n<\/li>\n

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                                Custodial wallets (like Blink currently) have less privacy<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

                                Yes, it is:<\/p>\n

                                \u27a1\ufe0f In practice, Lightning risks are lower<\/strong> than Bitcoin on-chain risks.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764089352732{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

                                Lightning vs. privacy coins (Monero, Zcash)<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]The following applies to payers and retailers today:[\/vc_column_text][vc_column_text css=”.vc_custom_1764689171154{margin-left: 50px !important;}”]\n
                                  \n
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                                  Install Lightning Wallet<\/p>\n<\/li>\n

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                                  Scan QR code<\/p>\n<\/li>\n

                                • \n

                                  pay or receive<\/p>\n<\/li>\n

                                • \n

                                  finished<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=””]\n

                                  No technology.
                                  No configuration.
                                  No blockchain analysis.
                                  No identity data.<\/p>\n

                                  \n

                                  Lightning is the easiest way to use Bitcoin privately.<\/strong><\/p>\n<\/blockquote>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764689221735{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

                                  Conclusion: Lightning turns Bitcoin back into digital cash<\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

                                  The Lightning Network brings a level of privacy that Bitcoin on-chain could never offer.<\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1764689267789{margin-left: 50px !important;}”]\n

                                  \u2714 No on-chain tracks<\/h3>\n

                                  \u2714 no KYC<\/h3>\n

                                  \u2714 no addresses<\/h3>\n

                                  \u2714 No asset visibility<\/h3>\n

                                  \u2714 No dealer data<\/h3>\n

                                  \u2714 No registration<\/h3>\n

                                  \u2714 No node management<\/h3>\n

                                  \u2714 Very private – completely automatic<\/h3>\n[\/vc_column_text][vc_column_text css=””]Today, Lightning is the best, simplest and most practical way<\/strong> to pay privately with Bitcoin.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1764689298190{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”]\n

                                  FAQ: Lightning Privacy<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

                                  Is Lightning anonymous?<\/strong><\/h3>\n

                                  Fast: Lightning is very private. The blockchain does not see your payment. <\/p>\n

                                  Can the merchant see how much Bitcoin I have?<\/strong><\/h3>\n

                                  No, Lightning prevents that completely.<\/p>\n

                                  Do I need KYC?<\/strong><\/h3>\n

                                  No, self-custody wallets work without accounts or personal data.<\/p>\n

                                  Do I have to operate a node for this?<\/strong><\/h3>\n

                                  No. Modern wallets do everything automatically. <\/p>\n

                                  Is Lightning complicated?<\/strong><\/h3>\n

                                  No – it’s even easier than Bitcoin on-chain.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"

                                  [vc_row][vc_column][vc_column_text css=”.vc_custom_1764688265590{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}”] How private are Lightning payments really? [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””] The simple guide for […]<\/p>\n","protected":false},"author":1,"featured_media":22830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[47,111],"tags":[],"class_list":["post-22855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lightning-en","category-payment-processing"],"_links":{"self":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/22855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/comments?post=22855"}],"version-history":[{"count":2,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/22855\/revisions"}],"predecessor-version":[{"id":22857,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/22855\/revisions\/22857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/media\/22830"}],"wp:attachment":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/media?parent=22855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/categories?post=22855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/tags?post=22855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}