Published on: 2017-05-24T10:43:19+00:00
The Lightning Network developers have recently addressed the complexities surrounding cross-chain payments and random currencies within the network. They acknowledged that cross-chain transactions introduce an additional layer of complexity to an already intricate system. The challenges associated with cross-chain transfers primarily concern the node performing the exchange or the endpoint creating the route, as they are most directly affected by these transactions. Other nodes may experience some added noise when trying to prove things along the routes. To mitigate this complexity, the developers proposed the creation of an order book on top of the base network, allowing for out-of-band communication and order matching. This approach would prove more efficient than attempting to incorporate the added complexity into the Lightning Network itself.In addition to discussing cross-chain payments, the developers also examined the relevance of random currencies on the Lightning Network. Given that Bitcoin already supports Lightning, the need for random currencies becomes less clear. It was noted that the creation of free channels, which are essential for many denial-of-service (DoS) deterrents, would rely on Bitcoin-like on-chain fees to function effectively. Consequently, this would shift the risk onto the nodes straddling different chains. However, the attractiveness of their service may diminish if high fees were necessary to absorb this risk. The developers emphasized their current focus on slowing down the evolution of the 1.0 specification, allowing them to finalize implementations and commence integration testing.A proposal made by ZmnSCPxj suggests modifying the Lightning Network protocol to change how proportional routing fees are advertised. Currently, nodes advertise supported coins using the hashes of their genesis blocks, with an exchange rate denominated in a ratio of 1/1,000,000 encoded in four bytes. To advertise exchange rates, a node allocates 64 bytes to identify the referred coins and four bytes for the actual exchange rate. For cross-chain exchange rates, both directions need to be advertised. One possible solution could be advertising a BTC-to-LTC exchange rate along with a rate offset. If this proposal is approved, network users will need to compute the exchange rate to determine the amount they should send.
Updated on: 2023-07-31T19:20:53.999322+00:00