Author: Patrick Strateman 2015-08-09 21:57:57
Published on: 2015-08-09T21:57:57+00:00
Payment hubs are able to charge fees for their services that help them recoup the costs of operating. These costs include the time value of funds locked up in payment channels, enhanced risk of loss of control of private keys, and normal operating costs such as networking and electricity. The money that is debited from a payment hub is simultaneously credited from either another payment hub or the person making the payment, so the net funds flow at a payment hub always sums to zero. Payment hubs do not advance credit to anyone, but they can assess fees for depositing funds which may depend on the amount deposited and how long it stays there. There are also transaction fees that a payment hub would have to pay to settle its Bitcoin transactions, which would be passed on as a cost to clients of the payment hub.
Updated on: 2023-06-10T19:02:32.271822+00:00