Zap Settlement Provider (ZSP)
The Zap Settlement Provider (ZSP) acts as the Payment Processor within the Zap Protocol.
While the Identity Authority (IA) serves as a "Bank" verifying who you are, the Zap Settlement Provider focuses strictly on liquidity, routing, and final settlement on the Lightning network using energy-backed coins like Bitcoin or Flokicoin.
What is a ZSP?
The Zap Settlement Provider (ZSP) acts as the financial engine of the Zap Protocol.
If you think of an Identity Authority as a driver's license bureau that verifies who you are, the Zap Settlement Provider is the specialized payment processor that actually moves your money.
ZSPs work entirely behind the scenes to process payments, bridge networks, and generate the final receipts that make a global, cross-platform tipping experience possible.
Core Responsibilities
A high-quality ZSP handles the heavy lifting of payment orchestration so that users don't have to:
1. Payment Processing
When you attempt to tip someone—whether they are on Nostr, Discord, or X—the ZSP automatically generates the lightning invoice that you pay. It safely handles the incoming funds from your wallet.
2. Settling Funds
Once the ZSP receives your payment, it immediately forwards that value to the recipient's personal Lightning node or Nostr Wallet Connect (NWC) setup.
3. Publishing the Receipt
After the payment successfully lands in the recipient's wallet, the ZSP publishes a cryptographic receipt to the Nostr network. This receipt is irrefutable proof that the payment occurred, and is what allows social applications to display a "Zapped!" animation on the screen.
4. Holding Fallback Funds
Occasionally, someone might receive a tip before they have ever set up a Lightning wallet computationally. In these cases, the ZSP acts as a temporary custodian. It holds the funds in a secure Fallback Address until the user logs in and links their wallet, at which point the ZSP automatically sweeps the funds to them.
An Open Ecosystem
The Zap Protocol was designed to be entirely permissionless and extensible:
- Anyone with liquidity and node infrastructure can operate their own ZSP.
- Users are free to choose any trusted ZSP to handle their payment orchestration, fostering healthy competition.
Ready to Build?
If you are a developer looking to build a client or deploy your own ZSP infrastructure, please refer to the technical specifications: