Author: Matt Corallo 2023-02-14 21:27:07
Published on: 2023-02-14T21:27:07+00:00
In a discussion on Lightning network reputation system, ZmnSCPxj categorized three types of reputation systems including first-hand experience, inferred experience, and hearsay. The first two are most comfortable to set up as they rely on personal experiences or unforgeable error messages. However, repeat interactions are too rare, and local knowledge gets outdated, leaving us with hearsay, which is not always reliable. A solution in Lightning is to obtain live information from the wallet vendor/LSP who extracts fees from every HTLC routed through them, but there are privacy risks involved. Altruistic nodes can also provide similar information, and users can median-filter to reduce risk. However, LSPs can be bought out, and developers can go rogue. In contrast, forwardable peerswaps create paths that allow payment routing without requiring pervasive monitoring. But this is worse for the network as it requires establishing trust relationships across the network and giving peers credit to be considered a robust node. Therefore, splicing/peerswap is a better way to rebalance, but it doesn't solve the issue of low capacity to clear an HTLC.
Updated on: 2023-06-03T11:46:06.245607+00:00