When thinking about the motivation for establishing a lightning network channel, I’m not sure I see how at least initially that transaction pricing will drop much below fees being charged for on chain transactions. For example, if on chain fees average $20, why wouldn’t a LN channel operator set fees at $15 until there are enough channels competing to undercut each other on cost. There doesn’t seem to be a motivation to set fees at the really low levels that we used to see on the Bitcoin network. What am I missing?
You are viewing a single comment's thread from: