Published on: 2017-12-13T01:19:00+00:00
In an email thread, the possibility of using Lightning Network (LN) for short-term loans and multi-hop payments is discussed. The original sender proposes the idea of setting up a marketplace where users can act as middlemen, instantly paying out funds and getting their money back after confirmation. However, Christian Decker points out that there is currently no support for short-term loans on LN, as all payments are fully backed by Bitcoin. ZmnSCPxj suggests that the original sender could run an LN node themselves and make future payments for low fees without the need for a middleman service. The conversation concludes with the notion that the marketplace idea may not be feasible or beneficial given the current state of LN technology.The discussion revolves around the concept of utilizing Lightning Network (LN) for short-term loans and multi-hop payments. Christian Decker highlights that short-term loans are not supported on LN since all payments are backed by Bitcoin. He questions the difference between multi-hop payments and those already facilitated by LN. The original sender proposes the idea of a marketplace where middlemen offer to pay out funds instantly and get reimbursed by the original sender later. Each transaction would be processed through Bitcoin, selecting the best offer from the marketplace's order book. This system offers advantages such as instant payments, income for middlemen, and the establishment of exchanges. However, it remains uncertain whether this scenario can be implemented on LN.The email exchange delves into the potential use of Lightning Network (LN) for creating a marketplace where users can take over payment obligations and earn income from transaction fees. The intermediary in this scenario would be listed in the exchange's order book and would instantly assume the payer's obligation. However, Christian expresses uncertainty about the specific use-case being referred to and asks for clarification regarding short-term loans or multi-hop payments. He explains that short-term loans are not supported on LN since all payments are fully backed by Bitcoin, while the concept of multi-hop payments is already present in LN. The exchange explores the idea of intermediaries generating income streams without risking their funds, but further clarification is needed to determine the viability of such a marketplace on LN.The writer's inquiry revolves around using Lightning Network (LN) to create marketplaces or exchanges where users can take over payment obligations and earn transaction fees. The idea involves an intermediary listed in the exchange's order book who would instantly assume the payer's obligation. This would allow intermediaries to generate income without risking their funds. The writer believes that many users would be interested in this concept, leading to the opening of numerous exchanges on the underlying network(s). Furthermore, the writer suggests that the failure of such an exchange would not have adverse effects on participants. However, it remains unclear whether this infrastructure can be implemented on LN.
Updated on: 2023-07-31T19:30:43.402044+00:00