Published on: 2018-08-14T02:46:45+00:00
In a recent email conversation between Robert and ZmnSCPxj, the topic of rebalancing in the Lightning Network (LN) is discussed. ZmnSCPxj proposes the idea of using modified onion-routing to read and modify maximum values for rebalancing purposes. He argues that rebalancing is important as it solves issues where a node has limited channels to send funds through, especially if a particular channel goes down.Robert, on the other hand, questions the need for rebalancing and suggests that dynamic fee changing is sufficient to address payment route issues. He believes that the primary goal of the LN is facilitating payments, not achieving channel balance.In response to this discussion, Robert introduces a new feature called "Free Rebalancing Proposals" for the Lightning Network. This feature aims to spread existing liquidity across the network for smoother operation. It involves sending a message over a channel with a proposed maximum amount for balancing. Each node in the network analyzes its incoming and outgoing channels and adjusts the maximum value according to its desired balance. If all nodes agree on the proposed rebalancing, the origin node sends a payment along this path without dropping any fees since all nodes benefit from the rebalancing act.Rebalancing is beneficial as it increases redundancy and allows for more possible routes for payments. For example, nodes with imbalanced channels can send polite messages to find multi-hop channels and ask if sending funds would benefit them as well. If it does, the sender can initiate the rebalancing process by sending the agreed-upon amount, resulting in balanced channels for both parties involved.However, ZmnSCPxj disagrees with the concept of rebalancing and suggests using off-to-on and on-to-off swapping instead. This approach involves exchanging off-chain funds for on-chain funds and can be implemented through a separate layer or software interacting with existing LN software without requiring protocol-level changes.The proposed "Free Rebalancing Proposals" feature can be used by both payers and payees to coordinate and find routes that can be made free using this feature. The feature is transported via onion-routing-packet style, making it undetectable for intermediate hop routes. It solves the same problems as rebalancing and splicing without requiring changes at the LN layer, only adding an application on top of LN.In summary, the email conversation discusses the introduction of the "Free Rebalancing Proposals" feature for the Lightning Network. This fee-less rebalancing scheme allows nodes to propose rebalancing amounts over channels, with each node adjusting the proposed maximum according to its desired balance. If all nodes agree, the rebalancing payment is sent without dropping any fees along the way. While some argue against the need for rebalancing, this feature aims to increase redundancy and provide more possible routes for payments. Alternatively, off-to-on and on-to-off swapping is suggested as an alternative solution.
Updated on: 2023-07-31T20:26:43.131688+00:00