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Understanding The Game Theory Of the Lightning Network
1897 sats \ 14 comments \ @Jon_Hodl 1 Apr 2023 bitcoin
Hey everyone,
I recently published this article on the game theory of the lightning network but before I really start to share it with others, I thought I would run it by everyone on here to see if you think there's somethingI should add go into more detail on.
Understanding The Game Theory Of the Lightning Network
I plan on using this to help educate people on how all of the incentives and rewards work on lightning and how it is very different from on-chain incentives.
Any feedback is always appreciated. Thanks in advance.
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21 sats \ 1 reply \ @DarthCoin 1 Apr 2023
https://i.postimg.cc/K8z15H6X/pretty-good.gif
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0 sats \ 0 replies \ @Jon_Hodl OP 1 Apr 2023
Thanks a bunch, Darth.
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21 sats \ 3 replies \ @9ener1c 1 Apr 2023
Good primer.
Small typo: "Well balanced liquidity is important but in order the the lightning network"
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0 sats \ 2 replies \ @Jon_Hodl OP 1 Apr 2023
Fixed. Thanks a bunch.
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21 sats \ 1 reply \ @02d769cb73 1 Apr 2023
and another -
High Routing Fees
Some routing nodes will naturally chose - should be 'choose' - to charge higher fees depending on how they are competing on all of the other points mentioned.
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2 sats \ 0 replies \ @Jon_Hodl OP 1 Apr 2023
Awesome. Fixed.
Thanks for your help.
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21 sats \ 1 reply \ @mattsats 1 Apr 2023
Great article! Would you care to post this on Nostr? I think it would get a lot of traction there.
https://github.com/nostr-protocol/nips/blob/master/23.md
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0 sats \ 0 replies \ @Jon_Hodl OP 1 Apr 2023
I would love to post this on Nostr but I am still learning how to do all of that securely.
I don't like to put my private key into online services so I am trying to figure out how to post on there via Snort. I am running Snort on my Umbrel but for some reason, I can't connect to Umbrel with a secure connection so Snort will not let me login with my nsec.
ELI5. How would I go about posting this on Nostr with the right combination of security and ease of use for long form content?
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0 sats \ 1 reply \ @random_ 1 Apr 2023
You might be interested in this paper:
https://arxiv.org/abs/1911.09432
"Our findings on the estimated revenue from transaction fees are in line with widespread opinion that participation is economically irrational for the majority of large routing nodes who currently hold the network together."
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0 sats \ 0 replies \ @Jon_Hodl OP 1 Apr 2023
Thanks for sharing.
It looks like a 24 page paper so I will have to dedicate some time to reading it later but the excerpt you posted is very intriguing.
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0 sats \ 1 reply \ @l0k18 1 Apr 2023
The stuff about funding circuits with other services is an area that is going to get really interesting in the future. I'm betting on the idea of privacy protected services paid for anonymously big with Indra. No more advertising profiling, instead you are paying for them to deliver the damn service.
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0 sats \ 0 replies \ @Jon_Hodl OP 1 Apr 2023
Yeah, I agree.
Looking forward for more value for value services instead of ads.
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0 sats \ 0 replies \ @BTC_LN 2 Apr 2023
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0 sats \ 0 replies \ @9ener1c 1 Apr 2023
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