Replying to Avatar LNBϟG

Hello everyone! I want to share my opinion on how much a node or multiple nodes in the #Bitcoin #LightningNetwork can earn for their owners, using the example of my own nodes. I will provide the figures as an annual percentage.

Currently, over approximately five days, the entire network of my nodes earns about 500,000 satoshis per day on average. This is an average parameter. 500,000 satoshis is 0.005 bitcoins.

The liquidity on my side across all nodes is roughly around 300 bitcoins. So, let's simply calculate the annual percentage. You can roughly calculate it like this: 0.005 bitcoin multiplied by 365 days divided by 300 bitcoins. Multiply by 100%, and it comes out to about 0.6% profit from fees, which are currently at 700 ppm + 1 sat base fee.

This formula does not take into account the costs for opening channels, which include on-chain fees for Bitcoin channel opening transactions, nor does it include various expenses related to channel closures, whether automatic or forced, cooperative or forced. We are just taking the net figure as if the same channels were open all year without any expenses. You should also consider the risks associated with annual node maintenance. These include hosting costs, creating backups, labor efforts, and the risks of node hacking, which could theoretically be hacked and have all funds stolen.

Is this a profitable venture? You decide for yourselves. I just wanted to share some useful information with you.

Goodbye!

#Stats #LNBiG #profit #fees

3 types of ⚡ nodes

Having run lightning nodes since early 2019, it's been great to watch the network grow, stumble, flourish, struggle and evolve .. my personal view is that there are three broad types of nodes now, and if you want to run a lightning node then be very clear about which sort before you start:

PlebNodes: Sovereignty, privacy and p2p connectivity

Run for sovereign access and control with two types of channels:

1. 2-4 channels with other *known* node runners - people who have got their shit together and keep their node up and/or let you know when/why it will be down; other plebs you know/trust; and ..

2. 1-2 channels into very well connected nodes that give you - and your plebpeers - much broader connectivity to the rest of the network

RoutingNodes: Connectivity and economic return

Larger nodes (measured by channels and channel capacity), that tie up significant capital (such as nostr:nprofile1qyt8wumn8ghj7etyv4hzumn0wd68ytnvv9hxgtcpvemhxue69uhkv6tvw3jhytnwdaehgu3wwa5kuef0dec82c33denh2mtvw9kh2uek0p4hymtkwejk2drevvmhxamg895rgattxam8quf5v3j8gdmpxf48gantvvery7fsv9ehyum9xdc8v0mzwfhkzerrv9ehg0t5wf6k2qpqngumlqmus6xkrmvvee4yc7swh9h4uk7vpq4ddt7a2jtvkc22y0as8a7mmt - see below) and have a very broad reach across the network. They have resilient infrastructure, knowledgeable operations, are reliable, and economically keep their head above water at least at a nominal level

LightningServiceProviders: Enablement, connectivity and return

Like RoutingNodes, competently run and highly reliable with significant capital, and various service layers/offerings that enable applications and other services to utilise lightning reliably without having to deal with lots of the underlying technicalities. Like RoutingNodes, they need to make a return on capital and operational costs to remain viable.

They're all important, and they each have quite different objectives, costs, risks and competency requirements. If you're curious about lightning I'd strongly recommend having a go! You'll learn loads, and using Zeus on your phone, connected to your own lightning node, whilst you're out and about at home, or travelling across the world is amazing and empowering!

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