One crucial decision for a Lightning node operator is whether to open few large channels or many small ones. To assess this, we'll explore three hypothetical scenarios, each representing different channel configurations. These examples can be scaled up or down depending on the available funds, with the figures provided being solely for comparative purposes.

Scenario 1: Small Channels

https://m.stacker.news/32722

[...]

Scenario 2: Mixed Size Channels

https://m.stacker.news/32723

[...]

Scenario 3: Large Channels

https://m.stacker.news/32724

[...]

In conclusion, there is no one-size-fits-all answer to whether it is better to open few large or many small channels on the Bitcoin Lightning Network. The optimal strategy depends on the specific needs and transaction patterns of the node operator. By carefully considering the advantages and disadvantages of each configuration, operators can tailor their channel setup to maximize efficiency, redundancy, and potential routing income.

... read more