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33 sats \ 2 replies \ @BlokchainB 2 Apr 2023
TL : DR
- Dynamic management of Lightning channel capacity is required to support efficient Lightning Network (LN) payments
- On-chain resizing introduces delays, adds costs and limits scalability
- Fast and cheap resizing may be required to support watchtower-free LN payments for casual users
- Channel factories allow off-chain channel resizing, but only by exchanging capacity within a single factory
- Hierarchical channels allow flexible, off-chain resizing of channels
- They don't require an exchange of capacity within a limited pool of users
- They also support watchtower-free casual users without stranding any channel capacity
- Hierarchical channels do for channel capacity what the LN does for bitcoin
- No change to the underlying Bitcoin protocol is required
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50 sats \ 1 reply \ @shibe OP 3 Apr 2023
This has to be the most exciting Lightning development in recent times. With this scheme channel factories and off-chain rebalancing would become possible without any soft-fork like eltoo, and thus Lightning can become way more powerful overnight without needing to change the base layer.
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77 sats \ 0 replies \ @BlokchainB 4 Apr 2023
I agree but seems too good to be true
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