LN transactions are a substitute good for on-chain transactions.
Therefore, demand for on-chain transactions will decrease as a
result of LN, meaning that fees will be lower than they would
otherwise be.
However, the two are also perfect compliments, as LN transactions
cannot take place at all without periodic on-chain transactions.
The demand for *all* Bitcoin transactions (LN and otherwise) is
itself a function of innumerable factors, one of which is the
question "Which form of money [Bitcoin or not-Bitcoin] do I think my
trading partners will be using?". By supporting a higher rate of
(higher-quality) Bitcoin transactions, the net result is highly
uncertain, but will probably be that LN actually increases trading
fees.
On 10/14/2015 6:14 AM, s7r via bitcoin-dev wrote:
Hello,
I am reading about the Lightning Network and the BIPs which need
to be
deployed until it can be fully functional. I have to say it's a
neat
solution to scale and have almost instant transactions in a peer 2
peer, distributed and trustless way. I already knows what the
needed
BIPs are and what each one does, I am curios about the impact this
will have on miner fees.
If transactions happen in a big percent offchain, and they are
only
broadcasted on the mainchain where funds are moved in or out of
the
lightning network, this means there will be less transactions on
the
mainchain -> less fees collected by the miners. What will
happen when
the block reward will go away? Either the fees for the little
amount
of onchain transactions will increase to unpractical levels,
either
the miners will find it not profitable to keep their hardware
plugged
in to mine, so will leave and the effect will be that the hashing
power of the network will decrease. Since the network's hashing
power
is a security feature (it makes some attacks impossible or
insanely
expensive) I think it's important to anticipate what will happen
in
this scenario.
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