A Decker-Wattenhofer MultiChannel For Reduced Inter-LSP Trust

The post delves into the intricate details of a Burchert-Decker-Wattenhofer (BDW) channel factory, highlighting its configuration and operational mechanics in contrast to traditional channel factories. It specifically focuses on the limited number of channels, N, hosted within this factory, which deviates from the theoretical maximum of (N * (N - 1)) / 2 that a fully realized BDW factory could support. This limitation is not an oversight but a strategic design choice aimed at optimizing availability for nodes like Ursula, emphasizing efficiency over the potential for increased connectivity. The rationale behind this approach is grounded in the practical utility of channels for routing purposes: an additional channel between two nodes, such as Alice and Bob, does not necessarily enhance Ursula's ability to route transactions if either node is unavailable. Rather than establishing redundant connections, the strategy prioritizes directing liquidity towards more critical nodes, thereby streamlining the network's overall fluidity and responsiveness.

Furthermore, the architecture introduces a novel concept wherein the channel originating from Ursula adopts a k-of-n multisignature scheme among the Lightning Service Providers (LSPs). This setup is pivotal, as it positions this particular channel as the cornerstone of what can be considered a true MultiChannel environment. The key distinction lies in the transition from a singular, unified pool of funds accessible by Ursula for transactions with any LSPs to a more flexible, one-to-many mapping capability. This contrasts with the conventional one-to-one mapping found in typical channel factories. By enabling multiple pools of funds to interact with multiple LSPs under a single onchain Unspent Transaction Output (UTXO), the system heralds a significant leap forward in efficiency and scalability. It is this architectural nuance that underscores the MultiChannel and MultiPTLC innovations, marking a departure from traditional approaches towards a more versatile and dynamic channel management framework.