Topic: Lighning Network will scale Bitcoin Adoption (Read 140 times)

many scenarios, making this question complicated
ok imagine there are 1.04mill LN users. and they are spread independantly as average routes
eg each node had 4 channels where their channel partner has 4 channels
    4
(1 )16
(2 )64
(3 )256
(4 )1024
(5 )4096
(6 )16384
(7 )65536
(8 )262144
(9 )1048576


thats upto 9 'hops' you might have to route to to get from one side to the other of the network
so if each user had a fee of say 1sat to go through them. it could be upto 9 sat to get your payment to the other end (if it required 9 hops)
(sounds easy so far right.. lets get more complicated)


however those 1million people have 4 channels
and those 1 million people can only guess their spending habits for about a month ahead to know how much funds to put in each preferred channel
so in this example that is 4 channels opening. and closing a month = 4mill onchain transactions
in a month there are about 4048 blocks. meaning ~1000 transactions onchain per block happening just for lightning. which is about 40% of onchain congestion(impacts onchain fee pressure)

also imagining if people only want to spend say $300 per channel. and they know that onchain is say $1.50 per open $1.50 per close=$3 cost (1%)
then they will charge a 1% fee to use a certain amount of their value, just to break even and not lose when offering their value as a route

which in short becomes $0.05 per $5 spent
which over a 9 hop route would be $0.45 fee to get a payment sent end to end

(i can leave you to work out the other nuances of variables.. if you want to get more complicated)

     if they locked up more or less per channel=100/amount locked*(onchain fee*2)=fee%
     if it was a network only needing 1 channel connected to hub(spoke instead of hop) =fee%/4
     if they locked in value for 3 month or 12 month =fee%/3 or fee%/12
     if the onchain demand pressure was high or low =fee%+-
     if there were more or less than 1million users =fee%*x hops
     if it only needed X hops =fee%*X
     if you only transact once= fee%*x hops+(2onchain/1)
                                                                      this $3 openclose+9hop=$3.45
                             50times=fee%*xhops+(2onchain/50)
                                                                      this $3 openclose/50+9hop=$0.51

The promise of lightning network is implemented; it's no longer a promise comparing with lots of altcoins that pledge to solve the scaling issue.

You mean the transaction fee?

Well, it depends. If you want to transact once and never use the LN again, then you'll have to pay for two on-chain transactions; one for opening the channel and one for closing it. In other words, if you want to transact only once, you have no reason to use the LN. Just broadcast an on-chain transaction instead. The lightning network exists to achieve transacting micro amounts with the lowest fee possible. It also allows you to spend dust amounts in constrast with the main layer.

If you want to start using it and being keen on it, then you'll realize how cheap it really is. Each transaction I've made costed 1 satoshi. ONE!

It depends on which node you are using as route; different route may have different fee set but for paying $5 worth of bitcoin, my best guess it must be maximum around a few cents on average. Otherwise, it won’t serve the purpose.
For tutorial, you can check these two written by me-
1. How to create Lightning network channel (testnet BTC)
2. A beginners guideline

If you want to dip your toes into trying Lightning, as of now the best noob-friendly wallet I've seen is Phoenix Wallet[1]. They're currently Android-only though. (iOS still in beta.)

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[1] https://bitcointalksearch.org/topic/opinions-on-phoenix-wallet-5250677

AFAIK, This would depend on the fee set by the node through which the transaction is being routed, the fee is usually low and can be free.
If you're going to open a channel yourself, you'll have to fund it through an on chain transaction; paying regular transaction fees.

Here are two good threads both started by Rath_
The Lightening Network FAQ
Basics of the Lightening Network

The promise of lightning network is fast and cheap transaction when doing micro payment. I want to know, with near approximation, what can be the gas fee for making a payment of $5 using ligtning network?

Also, are there other materials and good videos that could help me to learn how to make payment using LN? looking forward to your rich contributions.