🏷️ Categories: Lightning-dev
quoting naddr1qq…25ht📝 Summary: Adding covenants like CTV and APO to Bitcoin’s consensus rules would enhance Lightning’s scalability for casual users. It would enable millions of Lightning channels with a single UTXO, support off-chain channel resizing, provide liquidity, penalize attempts to put old states on-chain, and allow monitoring without a watchtower. Implementing these changes would popularize Lightning as a payment method. However, there is a tradeoff between trust and capital efficiency, as cheating can result in numerous on-chain transactions affecting fees. The author suggests hierarchical channels and changes to Bitcoin consensus rules to address this issue.
👥 Authors: • Anthony Towns ( Anthony Towns [ARCHIVE] (npub17rl…9l2h) ) • jlspc ( jlspc [ARCHIVE] (npub1rml…5exr) )
📅 Messages Date Range: 2023-09-08 to 2023-09-16
✉️ Message Count: 3
📚 Total Characters in Messages: 30303
Messages Summaries
✉️ Message by jlspc on 08/09/2023: Adding covenants to Bitcoin’s consensus rules, such as CheckTemplateVerify (CTV) and AnyPrevOut (APO), would greatly improve the scalability of Lightning for casual users. These changes would allow for the creation of millions of Lightning channels using a single UTXO, support resizing channels off-chain, provide liquidity to casual users, charge penalties for attempting to put an old state on-chain, and allow casual users to monitor the blockchain without a watchtower service. Implementing these changes would make Lightning a widely-used means of payment.
✉️ Message by Anthony Towns on 11/09/2023: There is a tradeoff between trust and capital efficiency when it comes to UTXOs and lightning updates. If a user cheats, it can result in a large number of on-chain transactions. The impact of these transactions depends on the timeframe and can affect fees. Users can calculate the number of transactions based on their desired timeframe and adjust their rollover accordingly. This reduces the capital efficiency for the user who cheated. Casual users cannot easily reduce their timeout by splitting into different UTXOs.
✉️ Message by jlspc on 17/09/2023: The author agrees with the tradeoff between trust/safety and capital efficiency and suggests using hierarchical channels to improve efficiency. They also propose a change to Bitcoin consensus rules to address the “thundering herd” problem.
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