Lightning in a bottle: liquidity on the Lightning network

Quick Take

  • Because Lightning is structured around payment channels, managing liquidity on the network is difficult
  • There are a variety of proposals to improve liquidity on the network, including trampoline routing and atomic multi-path payments (AMPs)
  • Congestion attacks allow malicious Lightning users to lock up large quantities of funds inexpensively.
Because Lightning is structured around payment channels, managing liquidity on the network is difficult.

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