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To be settled on chain however the output still needs to be of a transactable size, so even once settled you still effectively need a larger aggregate.
Well, the output of the updated channel balance is exactly that. As I already stated that I am talking about the time when the payment is in flight.
You do know that without payments in flight there are two outputs in the commitment transaction, right? It goes without sating that these two outputs can be way bigger than any individual payment and way bigger than the dust limit. You also know that lightning updates the commitment transaction differently for payments above and below the dust limit, right?
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these two outputs can be way bigger than any individual payment
Of course, that's the aggregate of the channel state, the point is that until that channel state is transactable in size that it's inherently trusted.
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Hm... It is trusted because it can be enforced by force close. Payments above the dust limit can be enforced by the HTLC when force closing. The payments below this as far as I see are added to the miners fee in the commitment transaction so you can't really enforce it by force close. This may or may not be a real problem, but I haven't really seen it discussed.
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may or may not be a real problem
That's the point of my original response, there's no reality in which amounts smaller than what's transactable on-chain are trustless, whether its a problem or not is in the eye of the beholder as to what constitutes a material amount to them.
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