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Diffstat (limited to 'README.md')
| -rw-r--r-- | README.md | 24 |
1 files changed, 17 insertions, 7 deletions
@@ -7,14 +7,9 @@ Everything you need to work with the Lightning Network in a dense and concise fo - **Local balance**: outgoing liquidity - **Remote balance**: incoming liquidity -Payments are attempted in two phases: +A new channel opened with a peer will have 100% local balance. Initially, you can only **send** funds. -- Pathfinding: traversing the channel graph and finding a path to the destination node -- Routing: attempting to actually send funds on a given path. - -Public graph information includes channel capacity and fees, and is known in **path finding** phase. - -Private graph information includes the current liquidity balance, and can only be discovered if a payment succeeds or fails on a **routing** attempt. +A new channel that a peer has initiated with you will have 100% remote balance. Initially, you can only **receive** funds. ### Circular Rebalance @@ -22,10 +17,25 @@ Excess **local** balance on one channel is used to pay _yourself_ with funds com At least two peers (i.e. two separate channels) are needed for a rebalance to occur. +### Payments + +Payments are attempted in two phases. + +- **Pathfinding**: traversing the channel graph and finding a path to the destination node +- **Routing**: attempting to actually send funds on a given path. + +Public graph information includes channel capacity and fees, and is known in **path finding** phase. Potential paths can be resolved locally without interaction with the network. + +Private graph information includes the current liquidity balance, and can only be discovered if a payment succeeds or fails on a **routing** attempt. + ### Fees Fees are always charged on the **outgoing** path, when a payment is **forwarded**. +If a channel is draining your liquidity, raise the fees. + +If a channel is pushing lots of liquidity, you cannot raise incoming fees, because that's not a thing. You have to raise your fees on _all_ your other channels (or at least on the channels that are received these payments/forwards.) + ## Numbers ### Definitions |