A thought experiment on bitcoin for payroll privacy



Summary:

The author of the text is addressing a concern about locking up funds in order to pay employees via Lightning Network. They argue that it is a necessary step and not an unreasonable assumption. In order to pay an employee on their first payday, the employer must have enough funds available to cover their salary. This is true for every subsequent payday, as well. Even with the worst possible topology for Lightning usage, where the employer only has a single big channel with the network and one employee, this system can still work. The author explains that as long as the employer is earning enough money to cover expenses and employee salaries, they do not need to lock up their own funds, only the funds of their employees. It is important to keep enough funds in channels to cover continuous operational expenses, including employee salaries. The author concludes by stating that this system will work regardless of the number of employees.


Updated on: 2023-06-14T15:50:16.689965+00:00