👻
Lightning Network does not solve #Bitcoin scalability
Those who argue that the emergence of Ordinals drives the use of Lightning and that this is positive for Bitcoin are wrong. The emergence of NFT in the network only benefits the miners because the increased activity and consequent congestion increases fees.
When competition for block space increases as it did in May, even a large exchange like Binance may need to suspend BTC withdrawals, because the cost of network fees becomes a money-loser.
If we look at the figures on the usage of this network in the last month, after two weeks of congestion, we observe a decrease in liquidity by almost 5% (at least 230 BTC less capacity) and in the number of channels by almost 2% (1,180 channels), according to Amboss Space https://amboss.space
In fact, the main monitors of the Lightning network did not express increases in usage during either congestion.
Why not use the Lightning network during a congestion such as those we have experienced with the Ordinals boom, if it is cheaper and faster than using the main network?
Because there is a barrier to entry due to the difficulty of opening payment channels.
Whoever wishes to make a payment needs his counterparty to be connected to the network, otherwise he has to hand over the trust of that operation to a third party that injects liquidity into a mediating channel.
The main services of the Lightning network are custodian services and perform this task for users, in exchange for a fee. The most common procedure used by these services is payment routing.
A company, which manages one or several nodes, offers a way to connect someone who sends BTC to someone who receives them through a channel funded by them.
The transaction becomes less private, because the operator might know the origin and destination of the funds involved.
The settlement capacity in USD terms has increased by 2.5x over the past year despite the amount of BTC capacity remaining relatively flat.
There is no accurate global measurement of lightning transaction traffic to measure any increase or decrease. If there were, lightning privacy would be questionable.
What issue did you run into? Maybe we can tweak something to help make things more intuitive?
THE NOSTR REPORT
CENSORSHIP RESISTANCE
Dec 6, 2023
Block Height: 820,015
Moscow Time: 22:68 ⚡/ $
V4V: 22 zaps ⚡ 27,600
Top Zapper: nostr:npub1dergggklka99wwrs92yz8wdjs952h2ux2ha2ed598ngwu9w7a6fsh9xzpc (⚡21,000 10 zaps)
Nostr Report is committed to V4V, thank you to our supporters.
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🎙️Quote of the Day🎙️
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“You may not like it, but censorship resistance is the value prop. Everything else follows.”
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🚨Headline Nostr News🚨
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nostr:npub16c0nh3dnadzqpm76uctf5hqhe2lny344zsmpm6feee9p5rdxaa9q586nvr discusses the latest Primal iOS release and his views on onboarding, performance/UX, and the new Primal wallet powered by Strike.
nostr:note1penfgps6mqp49n0f0cnlelr0l725wtk0g3x4maaxgzntmaku6wsqr2wmsr
Miljan responds to a question about email addresses and npubs when it comes to Primal’s in-app purchases.
nostr:note15lwnzrl0l5jp2wckn4q9rntnefpmk233pusy0y80gnjhe6zuhwnqcrmu70
nostr:npub1lh273a4wpkup00stw8dzqjvvrqrfdrv2v3v4t8pynuezlfe5vjnsnaa9nk announces Bitcoin Knots v25.1 which he says fixes a bug that allows inscriptions to bypass the data carry size, allowing for a vulnerability in Bitcoin core that is being exploited for spamming the blockchain.
nostr:note1w2f0fdwlmja23wgns36suf8xpzd0guywpume3vy4thhrvllpww7q4fhmkm
nostr:npub1qtvl2em0llpnnllffhat8zltugwwz97x79gfmxfz4qk52n6zpk3qq87dze reports that Knots v25.1 has now been deployed to production.
nostr:note1tuf7dekrcznxnw265ffknc9ept0fgelz3ntqsls8c55j6x8yfyyq5kwp5z
nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe shares reflections on visiting a village in Malawi that now has electricity because of Gridless and #Bitcoin mining.
nostr:note1cfjplsrck02crl5n3guf6ncrlt5vqef264usd5kc7nl77dws46lqpwkuzh
nostr:npub1u8lnhlw5usp3t9vmpz60ejpyt649z33hu82wc2hpv6m5xdqmuxhs46turz shares a cool circle diagram showing the change in the make-up of lightning addresses on Nostr since Wallet of Satoshi announced their departure from the US market.
nostr:note1sr7haf295nmhdq5n26xxrz5whe33h40twyqzr45aq66z05gxk6nsj96cqu
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💻nostr Tech💻
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nostr:npub1u8lnhlw5usp3t9vmpz60ejpyt649z33hu82wc2hpv6m5xdqmuxhs46turz DLCs over Nostr are happening soon. https://github.com/nostr-protocol/nips/pull/919
nostr:note17hqu6pk5f5fx8p3vft7kmr4vhj4vlhjnh5zsn4znhhdxqmch00hselfc7v
nostr:npub1v0lxxxxutpvrelsksy8cdhgfux9l6a42hsj2qzquu2zk7vc9qnkszrqj49 Zap.stream now lets you pick your color theme.
nostr:note1c9khnk3jah33zvmj4w5qm8kczck6kwtqs3aa9hneuwwe6j47dezqlv6l79
nostr:npub1mutnyacc9uc4t5mmxvpprwsauj5p2qxq95v4a9j0jxl8wnkfvuyque23vg releases Nostr Wallet Auth - a UX and security improvement on Nostr Wallet Connect. Check out their demo at https://blog.mutinywallet.com/nostr-wallet-auth/
nostr:note1jucjjs2hxnyrmqr6l7afzykllu0c8sw6y6g4e3cy52jgzmm5et5s7xeu5s
nostr:npub1ye5ptcxfyyxl5vjvdjar2ua3f0hynkjzpx552mu5snj3qmx5pzjscpknpr This noStrudel update lets you sign in with Amber 🔥💜
nostr:note1l3atyql4cpnna6cqr6l9nq7n7x6y3euulgqswug9c9wueg6mdyxsv0x85e
nostr:npub12rv5lskctqxxs2c8rf2zlzc7xx3qpvzs3w4etgemauy9thegr43sf485vg Lightning Tip Bot now allows you to display the fiat value of incoming payments.
nostr:note1pyuwjreecrac4d7gejqgvfjjknlls5m2ppwpmg4u4rfwwmnuad4sffqmlz
nostr:npub1gzuushllat7pet0ccv9yuhygvc8ldeyhrgxuwg744dn5khnpk3gs3ea5ds releases v0.1.5.5 of Nostree.me which improves the UX and overall usability. Importantly, he announces the official nostr:npub1ntreess3vmprp84nx896uf4mt777fw794aanvdyl0v0cgdycp6xq0zxcpf account which will be announcing updates.
nostr:note1w93n48jtrasz8ndkrm7w5eh9n8a9j5688e46mgqapnxnarx3el3qqde4jy
nostr:npub1fxk232fnf5ncechda4a5gk6n840lkenc6fszh88rgush5470jlts7vxqdp released 1.0.0 of the #opensource #macos app App Eraser! Eraser helps remove unwanted macOS applications and any related files that they leave behind.
nostr:note1x2zrna24u7tkk26pfc2tlyt9ykdvlu0894mgej2fyzx79kg2su4qt6tpqw
nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5 has been translated to Swahili by nostr:npub1q6ps7m94jfdastx2tx76sj8sq4nxdhlsgmzns2tr4xt6ydx6grzspm0kxr
nostr:note133d4p635tegv6s5lt92c2e465p2hwwdztcfgqw94svtckgcxdsaq3aqh4h
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⚡nostr Business⚡
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nostr:npub1art8cs66ffvnqns5zs5qa9fwlctmusj5lj38j94lv0ulw0j54wjqhpm0w5 and nostr:npub1s6z7hmmx2vud66f3utxd70qem8cwtggx0jgc7gh8pqwz2k8cltuqrdwk4c discuss the features offered by the Ocean mining pool.
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nostr:npub19tcpurtt6xulhw0r6sc404j9jraj0h8me2lzs7z2tqewz7l0hpas59nlea explains their increase in channel open/close pricing due to the current bitcoin fee environment.
nostr:note178cfmvj826vhfuhfhq87zd559xq9km95ssxu6jrcwlz4gd9ams7q4ucx62
nostr:npub1jfujw6llhq7wuvu5detycdsq5v5yqf56sgrdq8wlgrryx2a2p09svwm0gx Territories, formerly known as user generated subs, are now live on Stacker News.
nostr:note12ejlm22k9hp5wpqrva9ek33jeqz7kuksjhlhpfvcc8lx4x6xvels7frcfw
nostr:npub1getal6ykt05fsz5nqu4uld09nfj3y3qxmv8crys4aeut53unfvlqr80nfm Learn how the Alby extension makes it easier to use Territories on Stacker News.
nostr:note1urrccntws0xgq5sq8j0vrjzz95savrmma6zysfsf209hywcy5vpq24pf40
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🔥🔥Meme of the Day🔥🔥
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nostr:npub15c3rmcmcafw645z4w7u8e8q8akjpk9cmqfr95mnyl86r2m6xqfdsluh6re Be honest
nostr:note1jdqf6hw67fyvsxtnaxwkqnvsvzcf9nyxnmkn2079l9am4wql7l5qal6f8u
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Stay Classy, Nostr.
To be clear, we haven't increased fees, but we've added more options for lightning channel sellers to update their channel pricing.
Due to the rising cost of Bitcoin transactions, we've added larger multipliers on channel open/close pricing.
With a 4x multiplier, you can charge double the high priority transaction fee to both open a channel and close it later.
This favors larger channels at lower prices.
Over the past year, the lightning network capacity has remained almost completely flat IN BITCOIN TERMS.
When viewed in USD terms, the lightning network capacity has grown by 149% or 2.5x. Not bad at all.
🌋 Magma is a marketplace for liquidity on the lightning network:
🤑 On the buy side of the market are merchant and retailer nodes that receive payments.
⚡ On the sell side of the market are node operators that are connected to the network that help merchants receive reliable payments.
🌊 Hydro automates the buy side of the market to help ease the burden of managing lightning channels for businesses.
🏠 ⚡ ❤️ Hydro supports a cottage industry of dedicated and connected node operators with compensation for their services connecting the lightning network to businesses.
🏦 While any one liquidity provider may become regulated, Magma operates as a service connecting many liquidity providers, "LSPs", to businesses to be more resilient to regulatory pressure while maintaining service reliability.
Get started as an LSP here: amboss.space/magma
Don't want to manage lightning channels any more and need more time to focus on your business, but still want to support decentralized lightning network operators?
Set up Hydro for rules-based node management: amboss.space/hydro
We're actively revisiting the Privacy Policy now that our products are better defined. This will narrow the scope of data collection, retention, and use of any data.
This is a process which takes time (and is very costly). We're focused on building products that help the lightning network and specifically lightning network businesses, not hurt it or its privacy features.
It appears that enforcement actions are ramping up. If you believe your lightning business might have exposure, please reach out to us!
We're early in our product development, but we saw this coming and are ready to help.
Run your own lightning node to become unbannable from the App Store.
Amboss.Space
There are other paths forward other than KYC'ing the world and we're building them right now.
If this is happening to your business or you are concerned about a regulatory crackdown on lightning, please get in touch with us ASAP.
We're here to equip you to fight regulatory overreach. ⚡
I hope your lightning business is ready for the Black Friday shopping rush!
If not, you can set up a one time liquidity order through Hydro to ensure no shopper is turned away because of a lack of good liquidity.
Smash buy liquidity from node runners!
https://video.nostr.build/299bca705e6260b375fbac700cc5e5d1f057c92cf4f4d412a705283a4195ded1.mp4
This is what it looks like to run your own LSP using your own node through our LSP marketplace, Magma.
This entire process was completed via mobile (h/t nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5) netting 16k sats or $5.87 in BTC.
If you run an established lightning node, you can start selling channels via Magma here:
Amboss.space/magma
We've already helped our users earn over 0.5 BTC by creating a community collaborative LSP.