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SuperScalar: Laddered Timeout-Tree-Structured Decker-Wattenhofer Factories

SuperScalar: Laddered Timeout-Tree-Structured Decker-Wattenhofer Factories

Original Postby t-bast

Posted on: September 18, 2024 16:29 UTC

The discussion revolves around the operational intricacies and strategic decisions faced by Lightning Service Providers (LSPs) within the context of using single-signature funds outside their standard mechanism.

It highlights a specific approach where an LSP may choose to integrate just-in-time (JIT) channels for clients, aiming to utilize on-chain funds not already allocated within the factory setup. This method entails maintaining these funds completely separate from the factory's operations and incorporating them into conventional channel structures as needed.

This process, however, introduces a notable inefficiency by necessitating multiple channels for each user, which inherently contradicts the primary objective of minimizing the use of unspent transaction outputs (UTXOs) across a broader user base. The trade-off presented to LSPs under this model involves a choice between embracing the flexibility of engaging with normal channels outside the factory framework—to accommodate liquidity demands that the factory alone cannot meet—or committing exclusively to factory-based operations at the risk of occasionally being unable to fulfill liquidity requests.