10 sats \ 3 replies \ @l0k18 25 Jul 2023 \ on: Phoenix splicing support! Understand how it works and how it improves your life bitcoin
If I understand this all correctly, it also solves the "everyone can have a channel" problem too.
This makes the road to merchant adoption a lot smoother, and lowers the overall cost and may reduce some of the difficulties with liquidity management.
Haha. And coinjoins. So much gravy!
While splicing has a smaller on-chain footprint than looping in/out, or closing and reopening a larger channel it still doesn't completely solve the issue of everyone being able to have a channel. Ultimately it's still not possible to reallocate liquidity off-chain, that would probably require eltoo or hierarchical channels
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Unfortunately, it doesn't solves the "everyone can have a channel" issue. We're still limited by the total supply and block time on layer one. But I see it as a step for better usability when LN has this kind of demand!
The coinjoin part is really exciting, tho :D
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I think it does have a lot of uses that will defer a channel closure so it does increase the number of channels and the pressure on the fee market from LN.
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