Author: Patrick Strateman 2015-08-09 22:06:03
Published on: 2015-08-09T22:06:03+00:00
There seems to be some confusion regarding the terms used in this context. The hub's business model revolves around swapping funds between payment channels and having payment channels open with other hubs or users. If the hub requires user funds to open these channels, then there is no reason for users to pay the hub any fees. A hub that does not use its own funds to open payment channels to other hubs or merchants is useless. In a conversation on the bitcoin-dev mailing list, Tom Harding expressed his disagreement with Mark Friedenbach's claim that the funds were advanced by the hub on the creation of the channel without any credit involved. Tom stated that nothing requires the hub to advance anything, and if it does, the user can expect to pay for it. He predicts that hubs will assess a fee for depositing funds, which may depend on the amount deposited and the duration of stay. There is a name for these kinds of fees, but he did not mention it.
Updated on: 2023-06-10T19:04:59.137849+00:00