It's not possible for a peer to steal funds. Your funds only move from one node to the other when routing payments. You incur a small fee for opening/closing channels, and there is the possibility of force-closing a channel causing a somewhat higher fee from yourself or your peer, but typically is not very much. Experienced, well managed nodes would have this happen less (in my experience) but occasionally it still happens.
The protocol for opening dual-funded channel is similar to you signing a transaction when you spend a utxo. The tx is verifiable on the btc base-layer. That is all.
I actually learned that those 1000 sats are distributed among the community, which is why we see more sats in our account here every day. Cool really...
The use case is two people want to open a channel to each other, both want to contribute funds to the channel (in this case the same amount). Its a normal single lightning channel, but it starts out with liquidity on both sides and each side's contribution remains on their side of the channel. This is possible because both ends of the channel are "cooperatively opening" the channel, rather than one side being the sole initiator and funder of the channel.
3 benefits of Dual Funded Channels in #Lightning:
pretty cool!
Good to know
I'd like to know more about how much we'd need to trust the other node in the fund not to steal your coin
It's not possible for a peer to steal funds. Your funds only move from one node to the other when routing payments. You incur a small fee for opening/closing channels, and there is the possibility of force-closing a channel causing a somewhat higher fee from yourself or your peer, but typically is not very much. Experienced, well managed nodes would have this happen less (in my experience) but occasionally it still happens.
The protocol for opening dual-funded channel is similar to you signing a transaction when you spend a utxo. The tx is verifiable on the btc base-layer. That is all.
Your funds only move from one node to the other when routing payments.
Actually, that is misleading. Sorry. Your liquidity moves from one channel to the other. Your funds stay on your node.
Same risk as opening a regular channel basically. Nothing additional.
I knew this was theoretically possible, but never saw someone explain it and didn't see where a mechanism existed to coordinate it. Thanks LN+!
what does 1000 boost mean?
I paid 1000 SAT to Stacker News to support the operation, I guess. I'm unsure what it does.
It bumps your post on top
Ah okay. Damn i want 1000 sats lol
I actually learned that those 1000 sats are distributed among the community, which is why we see more sats in our account here every day. Cool really...
I assume the use case here is like B2B or even nation to nation?
The use case is two people want to open a channel to each other, both want to contribute funds to the channel (in this case the same amount). Its a normal single lightning channel, but it starts out with liquidity on both sides and each side's contribution remains on their side of the channel. This is possible because both ends of the channel are "cooperatively opening" the channel, rather than one side being the sole initiator and funder of the channel.
Nothing big like that. Just regular plebs opening to each other.
This is nice!