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Quite elaborate explanation is here. The original developer shut down his website
https://thebitcoinmanual.com/articles/hosted-lightning-channels/
Also fiat channels are based on this idea.
Also a post about general concepts, less specific about BLW or SBW wallets which implemented hosted channels since 2019.
https://medium.com/coinmonks/liquidity-abstraction-in-lightning-network-3d7a1d76ac82
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Tell me more. I am a LN novice. Or maybe link to good reading?