Author: info at bitmarkets.net 2015-08-10 15:35:55
Published on: 2015-08-10T15:35:55+00:00
The Lightning network enables nodes to earn fees that were previously unavailable to Bitcoin miners due to the limitations of the base Bitcoin layer. This is because the Lightning network can handle transaction throughput that Bitcoin cannot. However, it's debatable whether moving transactions off-chain is favorable as limited space could result in significantly higher fees due to competition. Additionally, if there were a higher or no limit, it would be more beneficial to pay miners rather than off-chain service providers. The Lightning network raises the value of a transaction on the blockchain, and Lightning nodes can attach large fees to Bitcoin settlement transactions when they settle on the blockchain. Miners earn larger fees, and nodes make sure their transactions get into the blockchain quickly. Although the conflict between rewarding miners with transaction fees and moving transactions off-chain hasn't been addressed in recent discussions, it doesn't seem favorable to move transactions off-chain regardless of capacity limits.
Updated on: 2023-06-10T19:08:32.301475+00:00