Why do "some" LN payments need to go onto layer 1? I thought LN stayed on layer 2 with next to 0 fees, so why is my phoenix wallet saying that the fee for a withdrawal will be 4k sats?
lighting seems a bit technical at the moment for me so I think I need to do some deeper research at some point.
I think I'll stick to wallet of satoshi until I understand it more.
Thanks for any insights.
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LN is Bitcoin. Any LN transaction is actually a "non-broadcasted" onchain transaction (HTLC). Here is an explanation of how HTLC works
Please read careful,ly all Phoenix FAQ page. They have very well explained there WHY. It is the fee for closing and opening the LN channels.
Here you have a list of LN documentation resources to read and learn
darth said it much better^
Since it's self-custodial, you have to open an initial on-chain channel with phoenix the first time you create a wallet, which incurs a higher sat fee at first
Once opening though, you shouldn't have any more fee issues
WoS is custodial, so they manage channels for you (and your funds)