Published on: 2017-12-21T08:12:44+00:00
A proposal called "splice in/out" has been discussed on the Lightning-dev mailing list. The idea is to reduce the number of blockchain transactions used by the Lightning Network (LN) and the fees paid to confirm them. The splicing transaction, which would involve depositing and withdrawing funding in the channel to and from the blockchain without closing the channel, could significantly reduce the number of blockchain transactions required. This reduction in fees is achieved by an additive amount, and the fee rate can be reduced, resulting in a multiplicative reduction in the fee paid.The "splice in/out" protocol, mentioned by ZmnSCPxj, will be included in BOLT 1.1. It involves two types of splicing: asynchronous and synchronous. The asynchronous splice-in protocol uses two transactions but allows the channel to be used as soon as the splice protocol completes. On the other hand, the synchronous splice-in protocol involves only one transaction, but the channel cannot be used until the splicing transaction is confirmed.To ensure the splicing transaction is not malleable, all inputs of the splicing transaction must spend SegWit UTXOs, except for the input that represents the previous funding transaction output. For pure splice-out, it would be possible to continue operating the channel even when the splicing transaction is unconfirmed. However, for any splice-in, there is a risk of double-spending while the splicing transaction is unconfirmed, making it unsafe to use the channel until confirmation.The author of the post, a computer networking developer new to cryptocurrency, proposes another way to reduce the number of blockchain transactions and fees in a common use case where a customer makes frequent purchases from the same merchant over an extended period of time. The idea is to deposit and withdraw funding in the channel without closing it, using a single blockchain transaction that combines the closing and re-opening transactions. This approach would reduce the number of blockchain transactions needed and result in a decrease in total fees paid for operating the channel.The author welcomes comments on their idea and offers to work with the community to develop a detailed specification and assist in its implementation. They emphasize the need for consensus before further progress can be made. The proposal has generated interest and discussion among the Lightning-dev mailing list participants.
Updated on: 2023-07-31T19:35:15.884483+00:00