Author: jlspc 2023-04-18 19:17:34
Published on: 2023-04-18T19:17:34+00:00
In the Lightning Network, routing payments is done through channels rather than nodes. To better understand this concept, it's important to have clear definitions of terms such as user, party, node, physical channel, logical channel, and Lightning Network. Rusty Russell's idea for channel_update_v2 messages can also be helpful.Routing fees in the Lightning Network are negotiated by all users who own a given logical channel. The sum of these fees is expected to be larger than the fees charged by most non-hierarchical channels. Gossiping channel capacity is quite reasonable as long as you use channel_update_v2 messages and understand how logical channels work.John Newbery recently discussed his thoughts on scaling Bitcoin through Hierarchical Channels and Timeout-Trees on the Lightning-Dev mailing list. He proposed that hierarchical channels could solve the problem of resizing channels off-chain. However, he believes that creating channels off-chain is still a challenge, which he thinks can be solved through Timeout-Trees.Newbery also suggested that factories may not be necessary for creating a world without scaling problems. Instead, he proposes instantiating all off-chain channels in a way that guarantees the off-chain UTXOs creating those factories, which can create a huge number of channels off-chain. While he has put some thought into this proposal, he acknowledges that he hasn't come up with anything satisfactory and requests feedback from the community.
Updated on: 2023-06-03T12:18:31.973566+00:00