Author: Joseph Poon 2015-08-10 05:01:03
Published on: 2015-08-10T05:01:03+00:00
The debate over off-chain transactions in bitcoin has raised concerns about the impact on mining rewards. While Lightning will help mitigate the advantages of centralized systems, huge payments similar to wire transfers today will still occur on-chain. The payment size of micropayments to credit cards are on a Lightning-scale. Without off-chain transactions, there is a paradox within a viable fee market as high-value transactions are willing to pay higher fees. However, this could crowd out low-value transactions on-chain. Lightning significantly mitigates this problem by aggregating the low-value transactions off-chain.
Updated on: 2023-06-10T19:07:39.859514+00:00