Author: Rusty Russell 2016-10-17 03:15:17
Published on: 2016-10-17T03:15:17+00:00
In a discussion on the Lightning-dev mailing list, Rusty Russell proposed an algorithm for bitcoin fees in the context of creating a channel for payment between parties A and B. The algorithm involves the channel creator paying the fee initially, while making microtransactions to each other within the channel without touching the fee itself. However, if adding an HTLC (Hashed Time-Locked Contract) requires extra fees due to larger transaction sizes, the fee is deducted from the HTLC itself. The algorithm has been criticized as not being less exploitable than a naive system, but it does increase channel capacity slightly. Further discussion and refinement of the algorithm is required to address issues such as how to change fee size when on-blockchain fee market conditions change.
Updated on: 2023-05-24T00:37:06.794860+00:00