Bingo, you never know what the future holds.
Running an LND (Lightning network node) AMA
Jeremiah Baker
Isaac Morgan
yeah
the game theory behind lightning nodes is you provide liquidity and earn fees for offering that liquidity
there's still data to be interpreted to figure out how your liquidity can be best used
efficiency upgrades like AMP will allow even small channels to participate in larger transaction routing
then we need some autopilot upgrades to fluctuate fees to naturally balance your channels
this is an interesting theory on how lighting will progress
medium.com
Ayden Peterson
Absolutely pathetic, you guys have been tricked into grinding for pennies instead of making actual millions. You're the useful idiots that allows Blockstream to flourish. Good job.
Lincoln Jackson
lets say you have a channel between some economic nodes that's balanced
10--------------------10
if you route for a 1 satoshi fee but wind up with
0-------------20
it would be smart to change that channels fees to something smaller like 0 or some msats to re-balance it back to
10---------10 or 7------------13
fluctuating fees can maximize your routing by incentivizing more transactions to be put through
if you're stuck on a lopsided channel for some time you'll have to re-balance on the mainchain which incurs a transaction fee
the next step on that is they're developing submarine swaps so that mainchain interaction is also used as a lightning channel opening so you save some fees on that end
it's all about maturing the network and efficiency upgrades
eventually 1 on chain transaction could equal 10,000s of LN transactions consolidated into 1
Christian Foster
>>eventually 1 on chain transaction could equal 10,000s of LN transactions consolidated into 1
Lots of privacy gains with that.
I'm sure it won't completely anonymize transactions, but private channels also make that kind of thing much easier
Cooper Gray
people reeing bitcoin is 3-7 tps with the most inefficient transaction schemes don't understand
with lightning it could be maybe averaging 20k-50k a second maybe more
you're layering out the network load allowing for an easily verifiable main chain and versatile 2nd layer
Blake Brooks
yeah exactly this network is so important useful
Henry Butler
What's hilarious about this, is that I bet the recent rally was started by people moving more and more BTC to LN.
Andrew Martin
Whats the optimal amount of coin to have in each node your running right now? Who can you connect to currently? What are the mechanisms behind rating your node as trustworthy?
Sorry for the barrage of questions, I just never looked into LN but it looks really interesting.
Jack Williams
it's hard to judge the optimal amount because there isn't enough data to go off of
obviously the more the better because it has the best chance of routing and collecting fees, but that is still inefficient because sometimes that coin can be allocated better by connecting to many nodes
you can connect to anyone you want, LND has an autopilot feature that tries to optimize your coin allocation but it's very new and mostly just connects to nodes that don't have a connection
this is something they're trying to improve upon to automate your liquidity distribution
the node rating is judged off of how often you're online, how balanced you channels are, how well connected you are, and how much liquidity you have to route
some nodes are routing for free to be become the most trustworthy nodes of the future and be able to charge a small fee from building that trust