Author: Paul Sztorc 2015-10-14 15:19:31
Published on: 2015-10-14T15:19:31+00:00
The Lightning Network (LN) serves as a substitute for on-chain transactions, which will decrease the demand for on-chain transactions, resulting in lower fees. However, LN transactions cannot take place without periodic on-chain transactions, making them perfect complements. The demand for all Bitcoin transactions, including LN and on-chain, is influenced by numerous factors, including what form of money trading partners will use. Supporting higher-quality Bitcoin transactions results in an uncertain net effect but may increase trading fees. A post from s7r via bitcoin-dev expresses curiosity about the impact of LN on miner fees. With transactions happening off-chain and only broadcasted on the mainchain to move funds in or out of the lightning network, there will be fewer transactions on the mainchain, resulting in less collected fees for miners. When block rewards disappear, on-chain transaction fees may increase to unpractical levels, leading miners to leave and potentially decreasing the network's hashing power, which is a security feature that makes some attacks impossible or expensive. It is important to anticipate this scenario.
Updated on: 2023-06-11T00:12:05.831413+00:00