Author: Dario Sneidermanis 2019-08-15 16:13:33
Published on: 2019-08-15T16:13:33+00:00
The Lightning Network proposal for automated inbound liquidity with invoices is being presented as a way to receive instant payments on the network. The proposal suggests embedding the node URI of the invoice creator, along with the amount to be routed, in the invoice, which will enable wallets to auto-open channels and push payment. However, there are problems with this idea, such as push_msat functionality not working for non-custodial setups, and while an HTLC payment can be used once the channel is deep enough, you'll have to wait until the channel is locked to receive the money and be able to spend it.Furthermore, the usability of the scheme "open channel, wait until it's locked, then send HTLC payment" could be deemed good enough for routing nodes to implement this idea to route payments "just in time," even if there aren't any pre-existing routes to the destination. It has been suggested that taking on-chain funds, creating a channel to a high-uptime node on the network, and using a submarine swap would be a practical way to set up incoming liquidity.It should be noted that the Lightning Network proposal discussed in the context is not for all LN nodes, but only for routing nodes. Bob doesn't have to establish the channel himself; he can push the information down until a routing node is found that can establish the channel with the other party. Certain specifics need to be defined, such as the size of Bob's channel and it should be smaller at first. Routing nodes who provide this service can charge a premium fee. As a liquidity provider, Bob won't cheat against himself, allowing instant payments via LN network. The proposal has advantages as it allows for instant payment transactions while hiding everything from the end-user. Additionally, it is possible that this proposal can be extended to neutrino LN wallets if they are public.
Updated on: 2023-06-02T19:54:27.699709+00:00