Upgrading Existing Lightning Channels

Upgrading channel types to support more restrictive network-level policies, such as those seen in version 3 (v3), poses a significant challenge. This is primarily due to the risk of non-propagating transactions occurring when the deployed channels' parameters, like the maximum number of accepted HTLCs (Hashed Time-Locked Contracts) per channel, are set too broadly. These upgrades aim to enhance security and efficiency across the network but require careful consideration of the implications on existing channel configurations and the overall network behavior. The transition to such advanced protocols necessitates a thorough analysis to ensure compatibility and to mitigate potential disruptions in transaction propagation.