Published on: 2022-10-12T10:50:56+00:00
The article discusses the concept of invalidating the PTLC transaction by using one of its inputs, but highlights that it may not be feasible if the onchain PTLC transaction has many inputs. The offchain-to-onchain swap protocol is designed to solve the issue of end-users not having onchain funds to payjoin into the onchain HTLC. The initiator must have a small on-chain prepayment contingent before the first swap transaction. The author refutes the idea that rebalancing is not exploitative and argues against the claim that the Lightning Network only benefits net senders. The post suggests implementing forwardable peerswaps on a wide scale to benefit net receivers. There are plans to move peerswap to two hops, but no further due to reliability concerns. The article introduces the concept of forwardable peerswap that aims to improve blockchain space utilization and discusses the potential depletion of on-Lightning funds by net senders. The inefficiencies of the "just make a channel" strategy and the limitations of liquidity markets are also discussed. The article concludes by stating that forwarding nodes have no incentive to filter out net receivers because they earn fees from the channel with them.
Updated on: 2023-08-01T00:45:51.191777+00:00