0 sats \ 4 replies \ @sn OP 13 Oct 2023 \ on: Stacker News Roundtable #2 - LSPs bitcoin
Do you expect to see the LSP ecosystem evolve into a winner-take-most market with a few large players? Or a collection of commoditized LSP offerings from many companies?
Or something else?
If we're thinking about this strictly from liquidity, More of the second in my view. I don't think it will be winner-take-most, I believe there will be a fairly diverse set.
If we're talking about a more general Lightning provider, I think we'd still see a decent group of offerings that focus in specific areas or types of solutions.
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I think we'd still see a decent group of offerings that focus in specific areas or types of solutions.
I see that too. Good point.
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The goal of the LSP Spec is to create an open system and avoid lock-in. Hopefully this plays out. With that said, capital intensive markets tend to be more centralized than non-capital-intensive ones.
One factor that might offset some of this tendency to centralize is that there are diminishing returns to increasingly massive LN channels. A 10BTC LN channel isn't all that useful if the average payment size is 10k sats. Individuals need many channels in order to reach the full network, which means that smaller players can enter the LSP market and sell small to medium sized channels.
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smaller players can enter the LSP market and sell small to medium sized channels.
good point too!
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