Think about Lightning channels as boxes. In the past, u have fixed size boxes. U have more sats? You need more boxes. And u always kept a few empty ones just in case u needed to store more coins.
Also, if a box doesn't fit by just a little bit, u nees a whole new box. So every wallet has a lot of boxes, some sitting empty, and which u had to pay to get/open.
Now u have just 1 box. A single magical box that changes in size to fit ur needs. No more clutter. it's also arguably cheaper. Voila.
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How is it possible? Aren't LN channels fixed and require on-chain tx to open/close? How can this wallet magicly change the channel capacity?
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Splicing! which is basically on chain transactions. But I think what it does is allow for dinamic channels, instead of static channels capacity wise
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If i open a channel with 1 BTC, i have to create a on-chain TX with 1 BTC. How does it allow me to dinamicly increase channel capacity if LN always requires the same amount of BTC to be on-chain?