Published on: 2017-12-26T04:10:03+00:00
In a recent discussion on the Lightning-dev mailing list, ZmnSCPxj proposed the creation of a "multifundchannel" command that would allow for the creation of a transaction with multiple channel outputs and negotiation with each node. However, this proposed command faces difficulties in ensuring that all target nodes are alive and deciding what to do if some target nodes are not contactable. It also requires waiting for all counterparties to complete the protocol and sign the commitment transactions before signing and broadcasting the initial opening transaction.Nevertheless, the same command could be modified in the future to utilize Decker-Burchert-Wattenhofer channel factories which are initially funded by a single party. Although this raises questions about how these factories would function, the focus should be on making the network itself first.In response to Ignatius Rivaldi's question regarding whether it is possible to use transaction batching to create multiple lightning channels with a single transaction and reduce transaction fees, Christian Decker confirmed that this is possible since the protocol always refers to a channel by its short channel ID. However, this is currently not implemented in any wallets and requires coordination of the fund-channel process for all channels in parallel, making it initially only practical for funding channels from a single initiator.A user on a mailing list asked if it was possible to use transaction batching to create multiple lightning channels with a single transaction and reduce transaction fees. Christian, another member of the list, responded affirmatively and explained that a single transaction can fund multiple channels since the protocol always refers to a channel by its short channel ID. However, he noted that this is currently not implemented in any wallets but shouldn't be too difficult to do so. The main challenge is coordinating the fund-channel process for all channels in parallel, so initially, it would only be used to fund channels from a single initiator.As a newcomer to Bitcoin and Lightning Network, the concept of transaction batching has been recently discovered. Transaction batching is the process of making multiple payments with a single transaction and fee, which is more cost-effective than making multiple payments with multiple transactions and fees.The question now arises if this technique can be used to create multiple lightning channels with a single transaction and thus reduce transaction fees even further.Lightning Network is a second-layer solution that enables off-chain transactions in Bitcoin. It allows users to make speedy transactions with lower fees than on-chain transactions.Transaction batching can be used in conjunction with Lightning Network to create multiple channels with a single transaction, but there are some limitations to this approach.One limitation is the amount of Bitcoin that can be sent through one channel. Each lightning channel has its own capacity, and once it reaches its limit, no more funds can be transmitted. Therefore, creating multiple channels with a single transaction could lead to an imbalance between them, causing the user to have to close and reopen channels frequently.Another issue is the potential for privacy concerns. When creating multiple channels with a single transaction, all the channel information is recorded on the blockchain, which could reveal the user's spending habits and other private details.In conclusion, while transaction batching can be utilized in conjunction with Lightning Network to create multiple channels with a single transaction, there are limitations to this approach such as channel capacity and privacy concerns. It's important to weigh the benefits and drawbacks before implementing this technique.
Updated on: 2023-07-31T19:35:40.502386+00:00