Rebalancing argument



Summary:

In an email exchange, Rene Pickhardt responded to a discussion on the Lightning Network by questioning whether rebalancing is necessary for network liquidity. In response, Dmytro Piatkivskyi, who has been working academically on the Lightning Network, suggested that a smart fee strategy might be more effective in balancing the network than sending cycle transactions. Piatkivskyi also referenced a paper that states that the distribution of funds in channels does not significantly affect network liquidity. However, Pickhardt argued that balanced channels may increase the probability of finding a working route and suggested Atomic Multipath Payments and splicing as potential solutions. Additionally, Pickhardt noted that routing fees in the Lightning Network would require a new approach to mathematical analysis, according to a 2010 paper. The weight of directed edges and HTLCs were also discussed as factors that make the problem of routing payments more dynamic. Various links were provided for further reading on the topic.


Updated on: 2023-05-25T01:48:20.401921+00:00