One of the biggest inherent limitations to the Lightning Network is the limited number of channels that can be opened or closed per block given the blocksize limit. Regardless of how many transactions can occur off-chain how cheaply, this is a fundamental bottleneck restricting how many people could actually realistically use the Lightning Network. Even the Lightning Network whitepaper went through in the conclusion that in a scenario where the entire world’s population of 7 billion was using Lightning, with only two on-chain transactions a year per person, Bitcoin would require 133 MB blocks for Lightning to work. This isn’t some out of left field problem, or unpredictable issue, it was a limitation of the protocol design fully understood from day one.
Part of the plan to address this issue has always been the idea of channel factories, i.e. a type of channel that more than two users participated in. This was always the direction things would have to go in order to scale Lightning an
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