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The current bitcoin transaction fee is about $7, so nobody is going to be using this for everyday transactions, making $30 not much of an incentive. It sounds l
by altacc 5y ago
The current bitcoin transaction fee is about $7, so nobody is going to be using this for everyday transactions, making $30 not much of an incentive. It sounds like there will be the option of choosing to accept cash instead, so it will be interesting to see how many prefer $30 of real, spendable cash over $23 of virtual, difficult to spend tokens.
Edit: Perhaps I was a bit glib as using the lightning network will probably solve the transaction fee issue. This could become an partially isolated transactional network, with less common transactions into or out of the network, like some SMS-based transactional networks in other parts of the world. In those cases uptake was quick as it was so easy to use (you only needed an SMS enabled phone). I am truly curious about how this turns out.
- celticninja 5y agoAs has been said before on almost every thread about this, lightning network alleviates the issue of high transaction costs for small transactions. https://www.coindesk.com/strike-launches-bitcoin-lightning-payment-app-in-el-salvador-full-eu-support-is-next https://www.coindesk.com/strike-launches-bitcoin-lightning-p...
- tffgg 5y agoHow secure is it compared to real transactions?
- xiphias2 5y agoAs far as I know you have to be on the internet at least once in 30 days, so it's good only for hot wallets. Also for payments over $1k probably right now Bitcoin transaction is more practical (I have heard of $100k lightning transactions though).
- rocqua 5y agoThere are risks, you need to remain online to catch your counter-party cheating. There are ways to outsource this to so-called watchtowers. This can generally be done privately, and the watchtowers generally get to take at least some of the cheater's money. I haven't heard of any successful malicious channel theft. I have read quite a few stories of people losing local data making it much harder to recover the money in the channel.
- rocqua 5y agoLightning network helps repeated small transactions between the same pair. However, the first transaction between a specific pair (channel opening) still needs to occur on-chain. That transaction still pays a full fee.
- varajelle 5y agoYou can route through your pair. Say A has a channel with B, B has a channel with C and C has a channel with D, you can make payment between A and D provided that B and C are online. In a way that nobody can steal money from one another, and neither B not D know who is paying who. In practice, B and C would probably be like banks or exchanges, with many channels, while normal users only need one channel open.
- thehappypm 5y agoSo you need something centralized for it to actually work.
- varajelle 5y agoNo, why? It's all P2P.
- rocqua 5y agoTrue, and in fact lightning payments tend to take many hops if routed publically. But every citizen would still need atleast one lightning channel. And opening those is expensive.
- narrator 5y agoThe lightning channel would go through a custodial wallet. Yes, people could self host their own wallets, but fees would be higher because they'd have to open a lightning channel.
- aaronhayes 5y agoBut over the lightning network it will be close to free
- robjan 5y agoThey'd still have to open 6M channels which would create the same number of transactions on the Bitcoin Blockchain
- errantmind 5y agoThis doesn't seem factually accurate. Please support this claim with more information and preferably a citation. This isn't how LN works to my knowledge.
- robjan 5y agoWhat I said is factually accurate. It's mentioned on the homepage of the lightning network website in the "How it Works" section. Why would you challenge my statement when you haven't even read the basic information? https://lightning.network/ https://lightning.network/
- errantmind 5y agoBecause you left out some information. These channels only have to be opened once, and at current prices this is around 40 cents. It costs a lot more to both open a bank account and send money from a -> b.
- robjan 5y agoIf you need to open up 6 million channels it will create approximately a month worth of transactions at the current rate and will significantly push up the transaction fee.
- deleted 5y ago[deleted]
- etherael 5y agoIt will definitely use lightning, and 99% chance it will be a custodial version no different in actual execution to venmo or paypal, as this is exactly what the present solution du jour there has been (strike in custodial mode) specifically to address the underlying fact that without such a config, lightning doesn't really work. (routability of payments scaling based on size sucks, inbound transfers suck, you need to run your own full node which most regular end users are flatly not going to do) In terms of that obviously negating any of the original promises of cryptocurrency in terms of censorship resistance, financial sovereignty, be your own bank, audit the state of the ledger upon which everybody is actively transacting, etc, yes, of course, that's the entire point of the hijack and sabotage of BTC.
- 3np 5y agoWhile tx fees are pretty volatile, I see about 3$ (65 sats/vB) to get into the next block (even looking back to when you wrote this) and <1$ if you’re ok with waiting an hour or so.
- hamburgerwah 5y agoI don't understand how you arrive at this seven dollar figure. Right now a median fee is 3-4 satoshi's per byte resulting in a typical transaction cost of about $0.64 usd. Here is a site that shows the live fee spread: https://jochen-hoenicke.de/queue/#BTC%20(default%20mempool),1w,fee https://jochen-hoenicke.de/queue/#BTC%20(default%20mempool),...