Author: Dmytro Piatkivskyi 2018-07-01 13:38:41
Published on: 2018-07-01T13:38:41+00:00
Dmytro Piatkivskyi, an academic working on the Lightning network, has raised questions about the benefits of "re-balancing" the network through cycle transactions. He suggests that cheaper fees or shorter paths can be achieved through a smart fee strategy without the need for re-balancing. Additionally, he notes that the distribution of funds in channels may not have a significant impact on network liquidity. However, Rene Pickhardt points out that the setting in the Lightning network is different from that described in a 2010 paper on transaction routing models and that routing fees in the Lightning network invalidate the theorem and lemma quoted by Dmytro. Furthermore, the Lightning network does not know the weights of directed edges, and the use of Hashed Time-Locked Contracts (HTLCs) affects the flow of the network by locking up funds while routing takes place. Rene suggests Atomic Multipath Payments and splicing as potential solutions to these issues. The privacy requirements of the Lightning network are still uncertain, and the network's routing may become more difficult as it grows.
Updated on: 2023-05-25T01:47:57.009413+00:00