Author: Paul Sztorc 2015-10-14 23:55:08
Published on: 2015-10-14T23:55:08+00:00
In this conversation, Paul Sztorc discusses how Lightning Network (LN) transactions are a substitute for on-chain transactions, which will lead to lower demand and fees for on-chain transactions. However, LN transactions cannot happen without periodic on-chain transactions. The demand for all Bitcoin transactions is influenced by various factors, including the form of money that trading partners will use. Therefore, supporting a higher rate of high-quality Bitcoin transactions is uncertain but will likely increase trading fees. On the other hand, if Bitcoin transactions' demand grows so high that we need the lightning network, there should be plenty of on-chain transactions for miners to collect fees from. At present, the incentives of everyone involved in the lightning network are not clear, and it is unclear whether enforcing a percentage of fees collected by payment hubs to be spent as miner fees would make sense. Overall, if one wants to increase Bitcoin transaction fees, they can either decrease supply or increase demand.
Updated on: 2023-06-11T00:12:19.742855+00:00