My node has successfully routed 143 payments (until the 31st October) with ~0.09 BTC capacity and 5 active channels. Here's a breakdown of my earnings from payment routing into each month:
Hey fellas, read through the thread but I’m not sure if I understand what’s payment routing and how you guys are making money out of it. Is there any step by step guide on how to set up this and run it on a PC.
The Lightning Network is a... network... of bidirectional payment channels. Visualizing that looks something like this:
To be able to send BTC through Lightning to another user, without opening a direct channel to them, you need to utilize routing.
'Routing' in this context means that a Lightning node operator receives a payment from your node through one channel and simultaneously sends a payment of the same amount out through a different channel. Chain that as many times as required until the intended receiver got the money and you've got a Lightning payment.
Since we provide a service which requires an always running computer and funds stored in channels (hot wallets), we have costs and provide value; therefore we can choose to ask users for fees in return for routing their payments. Their wallet can / should try to find the cheapest routes, but usually you do need to pay a few sats per payment to reach a 'far' (many hops) destination.
1. I have a pc which I can keep running 24x7
If you want to route payments, you do need a 24/7 running PC, yes. It can be a cheap old beater, though, as shown here:
[Guide] How to run a Bitcoin Core full node for under 50 bucks!2. Do I need any sort of mining equipment, if yes then what’s for the LN?
No, there is no mining taking place.
3. Am I right to think that it is peer to peer based system, through this system I become a middle connector and get paid for forwarding the payments?
That's correct. More reading here:
https://bitcointalksearch.org/topic/the-lightning-network-faq-5158920If there is ready thread on how to perform above actions then I would be grateful if a link is shared for the same. I saw another thread from the OP but that was again above my head. Basically I have zero idea about this so guidance is appreciated.
If you want to start from scratch, I have this regularly updated guide:
[Guide] FULL NODE OpenSUSE 15.3: bitcoind + electrs + c-lightning + RTL