A new report by BitMEX Research reveals that the most profitable fee bucket for running a Bitcoin Lightning node has earned them an annualized investment return of almost 1 percent on their outbound channel balance. The research goes into details to determine the major challenges the network would have to face if it starts scaling.
Bitcoin Lightning Node Operators Face Challenges
A research published by BitMEX Research on March 27th called The Lightning Network (Part 2) – Routing Fee Economics examines the challenges that Lightning node operators would face if the network starts to scale.
The paper argues that it is traditional financial conditions that would have a greater impact on Lightning network fees, rather than the technical aspects of its routing problems.
According to the study, the low barriers to entry into the Lightning network fees market could mean that the balance would favor users and low fees instead of investment returns for the liquidity providers.
This balance between ensuring the network has low…