How to run a LN hub? | Bitcointalksearch.org

tspacepilot

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Quote from: danda on April 24, 2016, 04:17:18 PM

from: http://bitcoin.stackexchange.com/questions/43827/is-the-lightning-network-a-proof-of-stake-system
In other words, it's not really proof of stake. You can earn fees, but not "interest". Also, Lightning Network devs are insistent that the fees earned will be tiny because there is near zero cost to entry.

danda, I think you cleared up the OPs confusion. Nevertheless, you do say that there's some "tiny" fees to be earned, if they OP wants to run a Lightning Node, I guess he can earn those fees by just running the software then.

danda

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from: http://bitcoin.stackexchange.com/questions/43827/is-the-lightning-network-a-proof-of-stake-system

Quote

Calling Lightning a Proof-of-Stake system is orthogonal to the concept usually labeled as PoS. Him having done so will just generate loads of confusion.

What we usually describe as PoS is a mechanism to achieve distributed consensus among a network of participants. Staking there is providing updates to the whole network's state, where you earn fees for contributing to the validity and the security of the network.

On the other hand, Lightning Network is a system of bilateral smartcontracts, where you may earn a fee by providing liquidity to other users. Nodes along a payment path don't provide any proof whatsoever, they merely forward a payment. There is no global consensus in Lightning, contracts are created, verified, and executed between two or a small number of participants. Any need to create consensus in the case of disagreement is provided by the proof-of-work of the Bitcoin network.

In other words, it's not really proof of stake. You can earn fees, but not "interest". Also, Lightning Network devs are insistent that the fees earned will be tiny because there is near zero cost to entry.

CounterEntropy

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I just learned from Andreas Antonopoulos that Lightning Network is going to be a Proof of Stake system (Ref: https://www.youtube.com/watch?v=uLpSM3HWU6U#t=58m31s). That means, a LN hub would be able to earn bitcoin by holding bitcoin, just like bank interest. Hence, I would like to know, how can I run a LN hub and what is the minimum amount of bitcoin I should have to operate one?

Topic: How to run a LN hub? (Read 1107 times)