> A core value proposition of LN is that Bitcoin users can execute payments with negligible transaction fees. This feature may be cherished by payment initiators, but in case of insufficiently low network traffic, it could be unprofitable for router entities.
Relative to the purposely (and ingeniously) wasteful process of mining, LN will always be faster and cheaper.
Our findings on the estimated revenue from transaction fees are in line with the widespread opinion that participation is economically irrational for the majority of the large routing nodes who currently hold the network together.
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[ 2.8 ms ] story [ 16.1 ms ] thread> A core value proposition of LN is that Bitcoin users can execute payments with negligible transaction fees. This feature may be cherished by payment initiators, but in case of insufficiently low network traffic, it could be unprofitable for router entities.
Relative to the purposely (and ingeniously) wasteful process of mining, LN will always be faster and cheaper.
[1] https://arxiv.org/pdf/1911.09432.pdf (PDF)
Our findings on the estimated revenue from transaction fees are in line with the widespread opinion that participation is economically irrational for the majority of the large routing nodes who currently hold the network together.