Author: Robert Olsson 2018-08-13 12:24:45
Published on: 2018-08-13T12:24:45+00:00
Robert Olsson has suggested a new feature for the Lightning Network called "Free Rebalancing Proposals". This is a fee-less, omni-beneficial rebalancing scheme that aims to spread existing grease around the layer two for smoother operation. The proposal involves sending a message over a channel A, and the max amount you would propose to balance in that direction. Each node analyses the in and out channels and adjusts the max to its own desire to balance. Max can only be adjusted down. If everyone is happy with the proposed rebalancing, the origin node sends a payment along this node without dropping off any fees along the way since all nodes agreed and benefit from the rebalancing act.Rebalancing helps to solve problems by increasing redundancy and maximum possible routes. For example, if a node has low local_balance and too low remote balance on different channels, it would have a high failure rate of about 80%. Rebalancing can help such nodes by sending polite messages to find if there exists any multi-hop channel, and ask whomever it may concern if sending some amount would benefit them as well. If it does, the sender sends over the amount and the channel balances are updated accordingly. In this way, the sender ends up with more possible routes out and more possible routes in, and nobody's channel went unbalanced, and nobody paid anyone.ZmnSCPxj argues that rebalancing is not a good solution, and suggests using off-to-on and on-to-off swapping instead. This involves swapping offchain funds for onchain funds and can be done on a separate layer or software that interacts with ordinary existing LN software without requiring additional changes at the LN protocol level.
Updated on: 2023-05-25T02:09:01.570739+00:00