Author: Bryan Bishop 2015-09-04 00:02:10
Published on: 2015-09-04T00:02:10+00:00
The lightning network, or another multi-hop payment channel network, can be used to handle more transactions per second. Payment channel network nodes could operate on multiple chains or ledgers if those ledgers are two-way-peg compatible with BTC. The payment network users may have different preferences about security models, fees or any other number of system properties, and this method can be more accommodating than only offering mainnet UTXOs. During the IRC monologue, "hub" and "cross-chain hubs" were used to describe a payment channel network node. An earlier identified implication has been that transaction fee trends may influence when payment channel users choose to settle on the main chain because fees may be too high to make the trade-offs worthwhile for the user. Centralized ledger operators, such as companies running spot exchanges, could run payment channel nodes, allowing their users to deposit and withdraw funds subject to whether the service provider is operating anything resembling a hot wallet. A centralized ledger operator could be considered a valid multi-chain destination in the above-mentioned imaginary lightning-compatible payment protocol.
Updated on: 2023-06-10T22:01:56.410660+00:00