free web page hit counter
If long term most transactions happen on Lightning Network, isn't that a HUGE RISK to miner fees?

If long term most transactions happen on Lightning Network, isn't that a HUGE RISK to miner fees?

Bitcoin Reddit

More / Bitcoin Reddit 11 Views

The important thing to understand about Lightning is that when all transactions happen off-chain, miners don't generate fee revenue. This undermines the security and sustainability of the network, which is all based in mining profits. With each halving event, miners become more and more dependent on transaction fees, until the subsidy is removed entirely and transaction fees is the ONLY income miners will generate. It's a ticking timebomb under Bitcoin - scale or die.

Miners don't just secure the network out of the goodness of their hearts, it costs a lot of money in electricity. This is the paradox of a system like lightning - it is supposed to enhance Bitcoin by making traffic happen off chain, but instead it undermines all the economic incentives that make Bitcoin work to begin with.

Could you tell me - why am I wrong?

submitted by /u/BasedInquiry
[link] [comments]

Comments