Published on: 2015-12-24T09:16:24+00:00
In an email conversation, the possibility of lowering the capital requirement for running a Lightning Network node is discussed. The writer suggests adopting a trust-based system similar to fractional-reserve banking to reduce barriers for potential node operators. They propose that these fractional-reserve hubs could offer lower transaction fees due to reduced capital requirements. Furthermore, they believe it may be possible to develop a proof-of-solvency mechanism as an alternative to the current fractional-reserve system. To explore this idea further, the writer invites John to connect on Skype. The writer also praises John's accessible writing style.Meanwhile, a recent GitHub gist introduces a new approach to hubs and centralization in the lightning network. This method aims to eliminate the need to tie up funds in multiple channels. Currently, reserves are required for each payment channel, which can limit the ability to route payments. To address this issue, the author proposes the creation of a metatoken or coloured coin on top of bitcoin. In this system, the hub would provide Hectorcoins to nodes, allowing them to sell these back to the hub for bitcoin if they have a net positive balance. By implementing this approach, hubs would not need to maintain reserves for each connected node. However, it is important to note that this solution relies on counterparty trust in Hector.Overall, the discussions cover different strategies to lower the capital requirement for operating Lightning Network nodes and reduce barriers to entry. The proposal of fractional-reserve hubs and the concept of using a metatoken/coloured coin system show potential for achieving these goals. Further exploration and development are needed, and the writer seeks to engage in further discussion with John to delve deeper into these ideas.
Updated on: 2023-07-31T18:44:20.243554+00:00