It makes economic sense to include a transaction on the Lightning Network,
iff the the fee to include the transaction on the blockchain is more than
than the Time Value of Money of the encumbered funds on the Lightening
Nodes amortized across the number of users pushing funds through a LN node.
La
On 10/14/2015 6:37 PM, s7r wrote:
> On 10/14/2015 6:19 PM, Paul Sztorc wrote:
> > LN transactions are a substitute good for on-chain transactions.
>
> > Therefore, demand for on-chain transactions will decrease as a
> > result of LN, meaning that fees will be lower than they would
> > otherwise be.
You could make the same argument about changetip, coinbase, bitstamp or any
other entity that operates off chain transactions.
1) There is probably no way of blocking them or enforcing fee collection
from entities that operate off chain transactions
2) They all have to settle on chain eventually
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On 10/14/2015 6:19 PM, Paul Sztorc wrote:
> LN transactions are a substitute good for on-chain transactions.
>
> Therefore, demand for on-chain transactions will decrease as a
> result of LN, meaning that fees will be lower than they would
> otherwi
On Wed, Oct 14, 2015 at 10:19 AM, Paul Sztorc via bitcoin-dev
wrote:
> However, the two are also perfect compliments, as LN transactions cannot take
> place at all without periodic on-chain transactions.
Additionally, lightning network hot wallets are not an ideal place to
store large quantities
LN transactions are a substitute good for on-chain transactions.
Therefore, demand for on-chain transactions will decrease as a result of
LN, meaning that fees will be lower than they would otherwise be.
However, the two are also perfect compliments, as LN transactions cannot
take place at all wi
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Hello,
I am reading about the Lightning Network and the BIPs which need to be
deployed until it can be fully functional. I have to say it's a neat
solution to scale and have almost instant transactions in a peer 2
peer, distributed and trustless way
