Post
Topic
Board Development & Technical Discussion
Re: Would it cost anything to open a Channel on Lightning Network?
by
Carlton Banks
on 04/01/2018, 22:36:14 UTC
Thus conflicting one the foundations of Bitcoin, decentalisation?  After 10 years, we've reinvented the Bank.    Undecided  

Nope.

Alot of people make this mistake. There won't be much incentive to attempt to make hubs of payment channels. The resources needed to run a Lightning node are little more than running a regular Bitcoin node, i.e. not much.

So the routing algorithms can use as many node hops as they like, as charging a discernible fee will only hurt how well your node is connected within the Lightning network. No-one's going to choose to pay high fees with this model, as it's going to be far too easy to find a cheaper alternative. Making a business out of that is going to be tough, it's real race-to-the-bottom economics.