Very long time Bitcoin holder and consumer, however solely on-chain. I am utterly new to the Lightning Community.
Whereas ready for my Mastering Lightning Community e-book to reach, I am simply making an attempt to select up the fundamentals by way of podcasts and articles. A specific podcast I listened to yesterday was one entitled Exploring Bitcoin’s Lightning Community.
At one level the chick internet hosting the podcast requested one thing alongside the traces of, “What if I do not need to ship Bitcoin? What if I simply need to obtain it?” It is a good query as a result of that is the place numerous distributors can be in. To which one of many specialists replied one thing alongside the traces of: if you would like the pockets supplier to determine a channel with you, they will cost a 1% fee. I’ve discovered an analogous thread on Reddit complaining about this excessive pockets price so I might wish to unravel it.
A buyer owes me 1 BTC for companies rendered. We have by no means executed enterprise earlier than. As I perceive it, he opens a “channel” to me, funds it with 1 BTC, and executes the transaction. Opening that channel prices him an on-chain transaction price so he hasn’t actually saved any cash but through the use of Lightning Community.
Now I need to spend 2 BTC to purchase a gold-plated figurine of Dennis Rodman. If I perceive the podcast and articles accurately, I am unable to use the 1 BTC obtained from my buyer to contribute towards that buy. That 1 BTC is all locked up. Until I shut that channel, the one factor I can do is ship it again to my buyer, or another third occasion downstream from him, and provided that the quantity is lower than 1 BTC, and provided that each channel between the supply and vacation spot have 1 BTC of capability. Is that this right?
If that is right, then it means to make LN viable, just about everybody must be related to well-connected hubs, versus simply making a bunch of extremely particular customer-to-vendor channels. However that is the place I get misplaced.
I, because the service supplier, would count on to open a channel to the hub with zero BTC. In spite of everything, I do not owe anybody something. My aim is to obtain. The hub presumably would not be answerable for funding the channel both (would they?) since they haven’t any half within the transaction. However an empty channel cannot conduct enterprise.
So how does this work? It sounds virtually like I might must entrance an quantity of BTC equal to what I count on to obtain from my clients over the long-term, fund the channel to the hub with it, protecting the BTC on the distant facet of the channel which incurs counterparty danger, after which pay a price to the hub/pockets 1% for the privilege. I hope I am lacking one thing. Is that this certainly the way in which issues work? If not, how ought to a vendor coordinate together with his clients who need to pay by way of LN? How ought to the channels be established and funded, ideally in a approach that bypasses the excessive pockets charges talked about above?