Row 13733

Row ID: 13733 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 13733 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

LN fees are indeed % based, as u/Crappyhodler said. You are wrong.

LN fees DO NOT work the same way as on-chain fees work. There is no fee market on LN because data capacity is not the bottleneck as it is on-chain. Instead, on LN, payment capacity is the bottleneck, so fees are charged as a percentage of the payment being routed. It's just hops multiplied by what each hop (node) is charging.

Each node can set a flat base fee plus a percentage fee, kinda the way credit cards charge \~30 cents base fee per transaction plus like 2.9% of the transaction or whatever, though obviously LN fees are far far lower.

So at some transaction size, LN transactions becomes more expensive than on-chain transactions. So LN is made for everyday payments in the (USD) single digits, double digits, or triple digits. As the years pass and on-chain fees rise LN payments will also be cheaper for four digit (USD) payments. And of course it all depends on how many hops a tx takes.

FieldValue
text LN fees are indeed % based, as u/Crappyhodler said. You are wrong. LN fees DO NOT work the same way as on-chain fees work. There is no fee market on LN because data capacity is not the bottleneck as it is on-chain. Instead, on LN, payment capacity is the bottleneck, so fees are charged as a percentage of the payment being routed. It's just hops multiplied by what each hop (node) is charging. Each node can set a flat base fee plus a percentage fee, kinda the way credit cards charge \~30 cents b…
label r/bitcoin
dataType comment
communityName r/Bitcoin
datetime 2024-05-20
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url_encoded Z0FBQUFBQm5Lak9Lc09LYkUzMW5zQkl4LU9MaXlSeVVEWmxlYnR0S3dfWDFBZnlmS3BfSnh3S3pFVU1TVlpsZ082Y1lVd3pjRzdkaXdIeUd6SDhKQXd6aVR3NDd3N2FUWXZsa25FRU96eHpPb3EzSmQwT0QxYUc5ZFVFWW1aUzBVLURha2F1VDFBNG9KTmxwbEN1STc1ejA3UmJvcGlnV0ZfLWJ4eVZVVVkwb0hTMHZhaWp5Y01MTjJlWHp0WjNvZ1hfZVlLR2xXRG9BVW1VN2VoS2VpRE9PU19jTldDNHF3UT09

Raw Record

{
  "text": "LN fees are indeed % based, as u/Crappyhodler said. You are wrong.\n\nLN fees DO NOT work the same way as on-chain fees work. There is no fee market on LN because data capacity is not the bottleneck as it is on-chain. Instead, on LN, payment capacity is the bottleneck, so fees are charged as a percentage of the payment being routed. It's just hops multiplied by what each hop (node) is charging.\n\nEach node can set a flat base fee plus a percentage fee, kinda the way credit cards charge \\~30 cents base fee per transaction plus like 2.9% of the transaction or whatever, though obviously LN fees are far far lower.\n\nSo at some transaction size, LN transactions becomes more expensive than on-chain transactions. So LN is made for everyday payments in the (USD) single digits, double digits, or triple digits. As the years pass and on-chain fees rise LN payments will also be cheaper for four digit (USD) payments. And of course it all depends on how many hops a tx takes.",
  "label": "r/bitcoin",
  "dataType": "comment",
  "communityName": "r/Bitcoin",
  "datetime": "2024-05-20",
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  "url_encoded": "Z0FBQUFBQm5Lak9Lc09LYkUzMW5zQkl4LU9MaXlSeVVEWmxlYnR0S3dfWDFBZnlmS3BfSnh3S3pFVU1TVlpsZ082Y1lVd3pjRzdkaXdIeUd6SDhKQXd6aVR3NDd3N2FUWXZsa25FRU96eHpPb3EzSmQwT0QxYUc5ZFVFWW1aUzBVLURha2F1VDFBNG9KTmxwbEN1STc1ejA3UmJvcGlnV0ZfLWJ4eVZVVVkwb0hTMHZhaWp5Y01MTjJlWHp0WjNvZ1hfZVlLR2xXRG9BVW1VN2VoS2VpRE9PU19jTldDNHF3UT09"
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