So that node was launched by Block, you know, one of Jack's companies. And the stated purpose behind it was to improve the liquidity and the routing capabilities of the Lightning Network.
One of the things that I didn't see coming with lightning was how commercial and custodial it would end up being for better and worse. I saw the small people being able to run lightning nodes and utilize them in a self-sovereign way, etc., etc. I didn't see how it would become such a backbone of Bitcoin commerce in a more commercial sense. I am aware that some of our very own folks here have had quite the success running lightning nodes on clearnet with large amounts of liquidity, which is what a routing node has to be really.
I've never done the math, but I'm certain that I've lost sets playing around with running nodes.
But the block folks announced at the conference that that node is making 9.7% APR on what's sitting on it, which is double digit millions of dollars a year.
The reason I see this is important and as possibly as sleeper is that the commercial backbone of the lightning network is working and there's business opportunities there for things that are going to be basically Bitcoin banks, except for they can be built in ways that are not necessarily custodial. They don't have to be custodial to use. The choice will be for the user, but the nodes will benefit everyone.
I know Philip has expressed concern in the past this would hurt miners and at this current moment in time it might look like that... but I still hold firmly that in the end blocks are going to be full. And the base layer is going to be quite expensive to use.
But the great news is the incentives for Layer 2 system being built are clear at this point. and on top of that lightning is a success.
And that means when the base layer does start filling up and moving Bitcoin around that way becomes much more expensive. We're going to be ready.
That's incredibly meaningful, I think
One of the things that I didn't see coming with lightning was how commercial and custodial it would end up being for better and worse. I saw the small people being able to run lightning nodes and utilize them in a self-sovereign way, etc., etc. I didn't see how it would become such a backbone of Bitcoin commerce in a more commercial sense. I am aware that some of our very own folks here have had quite the success running lightning nodes on clearnet with large amounts of liquidity, which is what a routing node has to be really.
I've never done the math, but I'm certain that I've lost sets playing around with running nodes.
But the block folks announced at the conference that that node is making 9.7% APR on what's sitting on it, which is double digit millions of dollars a year.
The reason I see this is important and as possibly as sleeper is that the commercial backbone of the lightning network is working and there's business opportunities there for things that are going to be basically Bitcoin banks, except for they can be built in ways that are not necessarily custodial. They don't have to be custodial to use. The choice will be for the user, but the nodes will benefit everyone.
I know Philip has expressed concern in the past this would hurt miners and at this current moment in time it might look like that... but I still hold firmly that in the end blocks are going to be full. And the base layer is going to be quite expensive to use.
But the great news is the incentives for Layer 2 system being built are clear at this point. and on top of that lightning is a success.
And that means when the base layer does start filling up and moving Bitcoin around that way becomes much more expensive. We're going to be ready.
That's incredibly meaningful, I think
Congratulate to Block's success with its Lightning node.
9.7% RTP! wow, it making Lightning nodes attractive option for everyone, very soon more entities will participate i think.
I just noticed its capacity is approx 185 BTC, strong enough to supporting LN's infrastructure
This initiative is great for promoting Bitcoin's utility in daily transactions. evolution of LN in commercial sector has brought some positive changes.
Block could provide resources and structure to expand network . As base layer becomes more and more overloaded tx fee can keep on rising , efficient Layer 2 solution like LN will be a must.