4 upvotes, 5 direct replies (showing 5)
View submission: ⚡ Lightning Network Megathread ⚡
Is the cost of opening a channel potentially to high?
Comment by jaydoors at 12/01/2018 at 18:44 UTC
3 upvotes, 1 direct replies
A normal transaction on the main chain
Comment by corkedfox at 12/01/2018 at 20:37 UTC
2 upvotes, 0 direct replies
Potential yes. It only becomes economically sane as you approach the channel size limit of $2400. That gives you a 1% fee to open. It's not smart to fund it with small amounts like $200 (10% fee). So that gives you your price of entry if you want to use LN.
Comment by codedaway at 12/01/2018 at 20:56 UTC
2 upvotes, 1 direct replies
Can you add more detail to your question? What is too high? Seems arbitrary. If you spend $50 opening a channel and $50 closing a channel ($100 in fees total) but you were able to do 1,000 transactions with that channel then what are technically the fees per transaction? 10 cents?
Your thousand transactions are now off-chain and not on-chain which is reducing the transaction load on-chain and thus the fee pressure as well causing fees to lower in theory.
Comment by Godspiral at 12/01/2018 at 19:23 UTC
1 upvotes, 1 direct replies
the part that concerns me is that balance updates on a chanel are made through future (on chain) transactions, and so I assume those need to use a fee (high enough) guaranteed to go through under any circumstance... ?
IIUC, opening a chanel doesn't necessarily imply a (high) fee if closing a chanel pays for child tx. That is, the chanel is open before the tx for it confirms, I think.
Comment by Mac-Jackson at 13/01/2018 at 13:32 UTC
1 upvotes, 0 direct replies
You probably will be able to open a channel with LTC and make atomic swaps