• Latest
As Lightning’s Economy Takes Shape, Devs Are Split on Proposed Fee Hike

As Lightning’s Economy Takes Shape, Devs Are Split on Proposed Fee Hike

October 21, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Tech

As Lightning’s Economy Takes Shape, Devs Are Split on Proposed Fee Hike

coinnewsdaily by coinnewsdaily
October 21, 2019
in Tech
0
As Lightning’s Economy Takes Shape, Devs Are Split on Proposed Fee Hike
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

Fees aren’t just a topic of discussion for Bitcoin Core users anymore. As the tech matures and an economy develops, fee discussions are making their way into the lightning network too.

This past weekend, bitcoiners and lightning fanatics gathered in an industrial Berlin sector for the first-ever Lightning Conference. With topics ranging from onboarding and interface design to the vogue economics of the nascent payment layer, Lighting Conference attendees said the event had the feel of bitcoin’s early days.

However, lightning isn’t quite new. When it first debuted following its release of the white paper in 2015, three major teams sprung up among a sea of hobbyists: Eclair, c-Lightning, and Lightning Labs. Over the two-day conference, questions over wallet design and lightning apps were joined by concerns over the network’s next steps given its relative explosion over the past year.

One such question was default fees, the minimum price to send a payment through a lightning network channel.

Currently, default fee settings scrape the bottom of the barrel at 1 satoshi plus 1 parts per million (or 0.000001 percent) of the payment. In a word, insignificant. One satoshi (a one-hundred millionth of a bitcoin) is worth around $0.00008252 at press time.

Node operators have the option to raise the basic fee, yet historically the baseline hasn’t deviated much. Blockstream’s c-Lightning Rusty Russel pointed out that some two-thirds of nodes don’t charge over the default. To spur the development of a fee market, Russell called for an uptick in the default fee from 1 sats plus 1 ppm to 5 sats and 500 ppm in an Oct. 10 email to lightning developers.

In essence, his proposal would flip the fee market upside down: nodes would bid down for processing payments as opposed to bidding up.

‘Change is coming’

Some level of fee increase is generally seen as necessary in the lightning community. As lightning app (lapp) developers and others build on the layer 2 system, Russell told CoinDesk he has concerns for future developers working on the basis of the current setup.

“We measure chemicals in parts per million … somebody coming in new might go, ‘all right cool, we’re going to do one part per million,’” Russell said. They need a warning that it’s going to change, he added.

Russell’s proposal was seconded by Pierre-Marie Padiou, CEO and founder of ACINQ, the parent company of lightning company Eclair, in an email. Zap Solutions founder Jack Maller also motioned support for the fee bump when asked by CoinDesk.

While the change would be small monetarily, other lightning developers believe a simple fee proposal could negatively affect the project’s decentralized image.

The wrong notion?

As part of the bitcoin universe, lightning has co-opted bitcoin’s enthusiasm for individual sovereignty and free markets. Understanding Russel’s proposal within the context of the network, then, becomes political: would the big three lightning developers be setting a precedent by changing the default fee? And if so, what are the implications?

Lightning Labs CTO Olaoluwa Osuntokun came out strongly against the proposal which he believes could easily be taken out of context, saying “this post promotes the notion that somehow in Lightning, developers decide on fees,” in an Oct. 11  response to Russell’s proposal.

“The operators set the fees. If the fees are too high, they don’t get paid … that’s the market,” he said.

Osuntokun told CoinDesk that education initiatives matter more and developers should steer clear of topics rife for misrepresentation.

Lightning Labs’ CEO Elizabeth Stark agreed, telling CoinDesk that the fee market should develop from the ground up, not top-down.

“I don’t think developers should be changing these defaults,” Stark said. “I think the fee market will emerge – it’s going to have to professionalize.”

At the end of the day, it’s still early for the bitcoin payment solution. Maller told CoinDesk the overhead for participating in the network remains low and, default fee increase or not, the network is heading in the right direction.

“The cost of getting on the network and routing is downloading free software on a laptop,” he concluded.

Olaoluwa Osuntokun image via William Foxley for CoinDesk

Credit: Source link

Tags: Crypto Tech
Share76Tweet48
Previous Post

Libra Looks For Alternative Approach Latest Ripple (XRP) News & Price Analysis

Next Post

Price Analysis 21/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building
Bitcoin

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
green gaming
Business

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
axie infinity: what are the minimum android phone requirements to play on mobile
Alt Coin

Axie Infinity: What Are the Minimum Android Phone Requirements to Play on Mobile

April 21, 2022
Load More
Next Post
Price Analysis 21/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

Price Analysis 21/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$28,043.001.31%
  • ethereumEthereum(ETH)$1,777.211.45%
  • tetherTether(USDT)$1.00-0.69%
  • binancecoinBNB(BNB)$328.951.24%
  • rippleXRP(XRP)$0.451745-0.92%
  • cardanoCardano(ADA)$0.3573350.60%
  • dogecoinDogecoin(DOGE)$0.0746290.31%
  • matic-networkPolygon(MATIC)$1.112.43%
  • solanaSolana(SOL)$21.032.54%
  • polkadotPolkadot(DOT)$6.062.02%
  • litecoinLitecoin(LTC)$93.771.90%
  • shiba-inuShiba Inu(SHIB)$0.0000110.68%
  • tronTRON(TRX)$0.0644890.87%
  • daiDai(DAI)$1.00-0.42%
  • chainlinkChainlink(LINK)$7.272.43%
  • cosmosCosmos Hub(ATOM)$11.311.14%
  • leo-tokenLEO Token(LEO)$3.472.43%
  • moneroMonero(XMR)$161.88-0.94%
  • ethereum-classicEthereum Classic(ETC)$20.381.21%
  • okbOKB(OKB)$42.111.54%
  • stellarStellar(XLM)$0.0925571.45%
  • bitcoin-cashBitcoin Cash(BCH)$124.52-0.66%
  • filecoinFilecoin(FIL)$5.715.50%
  • crypto-com-chainCronos(CRO)$0.0693040.85%
  • vechainVeChain(VET)$0.0229790.61%
  • algorandAlgorand(ALGO)$0.2119372.15%
  • internet-computerInternet Computer(ICP)$4.991.45%
  • eosEOS(EOS)$1.142.26%
  • elrond-erd-2MultiversX(EGLD)$42.981.73%
  • tezosTezos(XTZ)$1.152.47%
  • aaveAave(AAVE)$73.112.24%
  • theta-tokenTheta Network(THETA)$1.021.43%
  • neoNEO(NEO)$12.302.27%
  • havvenSynthetix Network(SNX)$2.471.66%
  • paxos-standardPax Dollar(USDP)$1.00-0.48%
  • bitcoin-cash-svBitcoin SV(BSV)$36.66-0.65%
  • pancakeswap-tokenPancakeSwap(CAKE)$3.771.14%
  • dashDash(DASH)$59.581.39%
  • makerMaker(MKR)$673.270.72%
  • huobi-tokenHuobi(HT)$3.700.92%
  • iotaIOTA(MIOTA)$0.2119012.49%
  • zilliqaZilliqa(ZIL)$0.0274501.74%
  • zcashZcash(ZEC)$36.342.03%
  • basic-attention-tokenBasic Attention(BAT)$0.2490835.08%
  • nemNEM(XEM)$0.0395451.63%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • qtumQtum(QTUM)$3.141.03%
  • kusamaKusama(KSM)$33.793.86%
  • compound-governance-tokenCompound(COMP)$42.781.69%
  • bitcoin-goldBitcoin Gold(BTG)$16.33-1.45%
  • yearn-financeyearn.finance(YFI)$8,449.532.07%
  • omisegoOMG Network(OMG)$1.85-0.30%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • golemGolem(GLM)$0.239729-0.21%
  • wavesWaves(WAVES)$2.170.92%
  • ontologyOntology(ONT)$0.2311684.24%
  • sushiSushi(SUSHI)$1.063.43%
  • digibyteDigiByte(DGB)$0.0097052.09%
  • umaUMA(UMA)$2.051.09%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%