lightning-dev

CheckTemplateVerify Does Not Scale Due to UTXO's Required For Fee Payment

CheckTemplateVerify Does Not Scale Due to UTXO's Required For Fee Payment

Original Postby Peter Todd

Posted on: January 30, 2024 04:38 UTC

In the realm of lightning commitments, it is clarified that there exist two distinct versions for local and remote sides.

It is suggested that fees should be deducted from the party opting to sign and broadcast the transaction. This concept aligns with CPFP (Child Pays for Parent) anchors, where the initiating party bears the fee cost. However, experience indicates that it's rare for both parties to contribute to the fees, despite the possibility within anchors.

Contrary to some beliefs, if a protocol demands multiple fee variants, the lightning channel's state does not progress until all these variants are supplied. Withholding fee variants is likened to an incomplete commitment transaction; the channel's state remains unchanged until protocol conditions are fully met.

The handling of HTLC (Hash-Time Locked Contracts) feerates, which could lead to an N^2 problem, has been covered extensively. To gain a comprehensive understanding, it is recommended to read the detailed exploration of this topic, which presents various solutions to the potential issues. For further insight into HTLCs and replace-by-fee strategies, readers can consult the blog posts available at v3 Transactions Review and contact the author through the provided email address, with the correct format being 'peter'[:-1]@petertodd.org.