delvingbitcoin
Channel depletion, LN Topology, Cycles and rational behavior of nodes
Posted on: November 19, 2024 22:54 UTC
The discussion emphasizes the importance of not jumping to conclusions based on the appealing aesthetics of mathematical models and charts without fully understanding the limitations inherent within these models.
It is pointed out that these limitations are critical because they might significantly alter the conclusions drawn from the research. The current model assumes static network topology and fees, which oversimplifies the dynamic nature of node operations in a network like the Lightning Network. Fee management is highlighted as a crucial lever for node operators, influencing the balance of channels through adjustments based on channel capacity, the node's own fee policy, and the fee policies of adjacent channels. This critique suggests incorporating dynamic fees into the model to more accurately reflect real-world conditions.
Further analysis criticizes the model for not adequately addressing how fees adjust as channel liquidity varies, noting that in reality, fees could become prohibitively high as a channel's liquidity nears depletion, leading to channel unusability. This contrasts with the observed phenomenon of channel depletion, attributed to the lack of professional node management and sophisticated fee management tools. The conversation shifts towards the potential benefits of focusing on strategies for node operators to adjust fees to manage flow and address channel depletion effectively.
Addressing open questions raised by the research, it is concluded that the evidence provided does not sufficiently support certain claims about channel depletion and the utility of additional channels beyond a spanning tree for redundancy, citing a need for a more nuanced approach to model constraints and real-world applicability. Doubts are expressed regarding the sufficiency of existing data to validate the model's predictions against actual network behavior.
In conclusion, the dialogue stresses the necessity for a more thorough investigation to determine the location of liquidity within the network, while acknowledging that factors other than those currently modeled would likely influence this determination. The suggestion is made that a network consisting of a spanning tree of non-depleted channels may resemble a hub-and-spoke topology, but this assertion requires further examination. The role of fees and network topology in influencing payment flows and channel liquidity is acknowledged, with an anticipation that professionally managed nodes will provide more indicative data in the future.