Author: ZmnSCPxj 2019-08-14 01:27:35
Published on: 2019-08-14T01:27:35+00:00
The email exchange discusses a proposal for automated inbound liquidity using invoices to receive payments through the Lightning Network. The proposal suggests embedding the node URI of the invoice creator along with the amount to be routed in the invoice, which would enable the auto-establishment of channels and pushing of payments to routing nodes. This solution is aimed at full Lightning Network nodes facing problems with waiting for inbound liquidity as channels establish when they first come online to receive LN payments. However, certain specifics need to be flushed out, such as the size of the channels and the possibility of charging a premium by routing nodes offering this service. In response, ZmnSCPxj recommends a current and practical way to set up incoming liquidity. This involves taking some on-chain funds, creating a channel to a high-uptime node on the network using submarine swap to buy on-chain funds, and reusing the same on-chain funds over and over to make more liquidity until the submarine swap provider runs out of on-chain funds. Although this requires on-chain funds, it gives the user control over what nodes to make channels with and would be a good investment in their future accessibility over the Lightning Network. Additionally, the most sensible way to store and transport financial capital is Bitcoin, and new businesses or merchants presumably have capital in some form before starting their business. Thus, they already have what is needed to start this process.
Updated on: 2023-06-02T19:55:59.407558+00:00