Scaling Noncustodial Mining Payouts with CTV

The discussion revolves around the mechanisms of congestion control in blockchain technology and how it compares to the approach taken by the Lightning Network. The Lightning Network aims to alleviate congestion on the base blockchain by enabling off-chain transactions. This method effectively reduces the number of transactions that need to be recorded on the blockchain itself, compressing potentially infinite transactions between two parties into just a couple of on-chain transactions under optimal conditions.

On the other hand, congestion control operates on a different principle. Instead of reducing the overall number of transactions that hit the blockchain, it focuses on managing when these transactions are included in the blockchain. This approach does not decrease the number of transactions; in fact, it might introduce additional ones. However, it allows for the deferral and distribution of transactions over time, which helps in spreading out the load on the blockchain. This technique is crucial for maintaining the blockchain's efficiency and scalability by preventing bottlenecks and ensuring smoother operation even under heavy transaction volumes.