Author: ZmnSCPxj 2021-09-02 16:23:15
Published on: 2021-09-02T16:23:15+00:00
The context discusses the cost involved in converting on-Lightning bitcoins to onchain bitcoins and vice versa. It mentions that Boltz, an exchange that facilitates conversion between the two forms of bitcoin, charges a fee. The scenario of Lady Gaga having on-Lightning bitcoins and wanting to pay 0.6BTC to Madonna is presented. Lady Gaga has two options - close some channels to convert on-Lightning bitcoins to onchain bitcoins or use Boltz for the conversion. If Lady Gaga had made multiple channels, closing them to convert would require significant onchain activity. The second option can be achieved with proper design of pathfinding algorithms. A pathfinding algorithm is necessary for delivering funds over Lightning Network to a Boltz Lightning node. The context highlights the importance of Lightning as an attempt to provide fast, cheap, reliable, and non-censorable payments.
Updated on: 2023-06-03T05:47:16.221541+00:00