Why do we need fee estimation in the protocol?



Summary:

In a discussion thread, ZmnSCPxj questioned the need for consensus in commitment transactions in Lightning Network. ZmnSCPxj suggested that each peer should have their own version of the transaction and be responsible for paying the associated fee. However, ZmnSCPxj also acknowledged that this could lead to issues with both parties being unhappy with the fees when it comes time to use the transaction.ZmnSCPxj noted that Eltoo works around this issue by using a single input/output pair with SIGHASH_SINGLE|SIGHASH_ANYONECANPAY, which allows fees to be attached later without causing bloat. This technique cannot be used in Poon-Dryja because commitment transactions often have multiple outputs.


Updated on: 2023-05-25T01:00:07.456878+00:00