Open protocols drive innovation
NWC – Nostr Wallet Connect – has an impressive technical lineage. The digital and physical connectors used, such as cables and Internet protocols, work best when open and standardized. No permission is required to design devices that use standard connectors. There is no need to license special chips from a single company. You do not have to pay to use the protocol. You must ensure that your device or app is compatible with published specifications.
The Universal’s transition to open connectors is driven by basic standards such as VGA (for initial video output), 3.5mm audio jack (for analog audio), Ethernet (for wired networking), and USB (for peripheral communication). This evolution ultimately led to USB-C, a powerful, unified connector designed to process power, data, audio and video across virtually all modern devices. Imagine trying to use a different cable for all your devices…
In contrast, some communication protocols are unique. For example, Skype uses its own closed protocol to send and receive voice calls. The protocol is not published and the Skype application is closed. This makes it extremely difficult for anyone other than Microsoft to develop an application that can, as owner, be able to initiate or accept Skype calls. Another example is Sony’s Minidisc, a unique digital music format and disc. I had to play or record certain Sony hardware and ended up losing to an MP3 player with open format and USB mass storage.
Since the introduction of Lightning Network, Bitcoin payments have been aimed at great innovation while improving the user experience while reducing developer complexity thanks to open standards such as Webln, LNURL, Lightning Address, and Nostrale Wallet Connect.
The Expanding NWC Ecosystem
NWC (Nostr Wallet Connect) is an open protocol that connects your Lightning wallet to your app. It provides a standardized way for both sides to communicate, can carry multiple signals, and essentially acts as a USB-C for apps and Bitcoin wallets.
Today, the NWC ecosystem has an increasing range of apps and wallets, from games and fintech tools to hardware devices. It is detached from the major use cases of Nostr, a social media app.
Despite the role of NoStr as a NWC adjustment layer, wallet and app users do not need Nostr keys or specific knowledge to enjoy seamless in-app payments directly from their own wallets.
While new wallets and apps each contribute to the overall growth of the ecosystem, most importantly, other apps can seamlessly make onboard users from existing NWC wallets. And the opposite: With each new wallet, you can quickly provide many new use cases to your existing user base.
This modular and interoperable design reflects the success of the early Internet and USB-C. The freedom to innovate without asking for permission and the ability to plug and play across the platform.
How a wallet benefits from NWC
By linking your flash drive to your laptop, sound system, to your PC, and to your camera, NWC makes it easy to connect your Bitcoin Lightning wallet to the web or mobile app, just as USB-C allows for a seamless connection. Whether users rely on a managed wallet, a self-supporting mobile app, or a complete Lightning node, NWC allows for instant interoperability across platforms.
Here are two examples of how NWC integration allows apps to unlock new environments in wallets.
The Alby Browser extension converts NWC-compatible wallets into fully functional browser wallets, allowing users to click directly on payments on the web.
Alby MCP server, another example, allows payments through AI agents, transforming all Lightning wallets into agent wallets that can send and receive via chat or act autonomously.
In short, some lightning wallets are already equipped to provide users with a completely new environment, and therefore are equipped with attractive use cases such as Agent Commerce and ways to explore web-native payment experiences such as gaming and zapping.
As a result, wallets create more opportunities for users at additional integration costs thanks to NWC’s standardized API interface.
How apps benefit from Nostr Wallet Connect
USB-C utilizes the functions of the host system to communicate with power sources with connected devices. NWC works in the same way with the app. Instead of implementing full wallet functionality, developers can outsource their payment infrastructure to existing wallet providers.
This allows the app to integrate lightning payments by simply adjusting payment intent through the NWC between connected wallets. As a result, the app does not retain user funds, nor does it contain regulatory burdens or complicated key management. Developers can freely focus on building great app experiences without becoming the wallet provider themselves.
Open standards like NWC not only simplify integration, but also enable new use cases and business models.
Bitcoin-based subscription payments are a clear example. Well-defined permissions and protection budgets allow users to grant app-controlled access to their wallets. The app can then request a recurring monthly payment. Tools like Flash Help merchants and developers have set up these subscription flows, and platforms like Indeehub.studio are already leveraging NWC to offer premium subscriptions paid in Bitcoin.
Just as connecting devices via USB-C is seamless, NWC offers a plug-and-play experience for apps and wallets. The protocol handles all the complexity. Therefore, users do not need to manually copy and paste the connection secret. Whether Nostr or elsewhere, “connecting your wallet” is just as easy as charging with a mobile phone.
Outlook
NWCs were created to unify and simplify wallet-to-wallet connections across diverse domains. The biggest success so far has been the interface near Bitcoin payment use cases. The result is a simpler, faster, and more seamless user experience.
Today, USB-C supports Thunderbolt. NWC is equally versatile inclusion of other protocols. The community is actively debating on-chain transaction extensions that seek to expand NWCS capabilities beyond lightning. Multi-currency support is another promising innovation with Bitcoin and Stablecoins for Lightning Network. As a simple messaging layer, Nostr Wallet Connect can accommodate new use cases to meet changing user demands and ecosystem requirements.
Just as USB-C provides power to charge your device, NWC wallets offer payment capabilities in an easy way to a supercharged app with in-app transactions. That’s what fasts in the developer community. Geyser, Bitcoin++, and Presidio Bitcoin have already become central parts of the hackathon.
Today, a growing ecosystem of apps and wallet developers work together to create fragmented cables, individual APIs, closed systems, and alternatives to custom integrations in the payment world, with interoperable standards to drive innovation in payments and Bitcoin adoption.
Source: https://bitcoinmagazine.com/technical/nostr-wallet-connect-bitcoin-usb
