Author: ZmnSCPxj 2021-08-14 23:41:12
Published on: 2021-08-14T23:41:12+00:00
In a conversation between Daki and ZmnSCPxj, the latter explains that there is a difference between running a Bitcoin fullnode and a Lightning forwarding node. The key distinction is that while a Bitcoin fullnode does not risk any lockup of its funds just to run, a Lightning forwarding node entails the risk of having its funds locked and unavailable. During payment forwarding, the funds involved in the process are kept in an HTLC until the forwarding is resolved either successfully or unsuccessfully. This means that the owner of the funds cannot use them until the forwarding process is complete. ZmnSCPxj further explains that having one's funds locked and unavailable, even temporarily, is only acceptable if there is a return on investment. However, the amounts and timeframes involved in the Lightning forwarding process are so short that any return on investment would be "ridiculously minuscule." Therefore, most forwarding nodes earn zero or negative net income. Hubs with significant liquidity invested in them may charge some fee based on substantial total amounts and timeframes. The purpose of the conversation was to discover this feerate. However, this information may be a "trade secret," in which case there is no point in asking about it.
Updated on: 2023-06-03T05:29:14.030516+00:00