3 upvotes, 1 direct replies (showing 1)
View submission: ⚡ Lightning Network Megathread ⚡
What about this[1] concern that LN won't work due to inadequate incentive model? Edit: I'd like to add a general question, who is supposed to run hubs and what is his incentive?
1: https://medium.com/@homakov/why-lightning-and-raiden-networks-will-not-work-d1880e4bc294
Comment by codedaway at 06/01/2018 at 22:23 UTC
3 upvotes, 2 direct replies
I read over the article but I'm not entirely sure I understand what they are trying to say.
The incentive is to have essentially free and fast (Trusted 0-Confirmation transaction) transactions that can be "streamed". This simply isn't possible on-chain.
Hubs may open just to make some interest on Coins they are holding even if it's a small amount. Hubs will likely be businesses and their incentive is to be paid by their customer so they will have to have channels open and available to do that, naturally creating a "hub".
Let me know if I'm missing something as I do want to answer your question correctly.