- Can I compile and run a node?
- We must first become the Lightning Network
- Paying for goods and services
- What happens when you close half of the Lightning Network?
Brekken brought up a node running on AWS
Compiling, installing, and running Lightning Network Daemon, lnd, was straight forward. I look forward to using payment channels for sending and receiving bitcoin.That's "straight forward" for a tech-savvy person. The Lightning Network white paper was published only 30 months ago, so it is good to see that the code is already in reasonable shape. He used a c5.large AWS instance with 500GB of disk, which would cost $61.20/month plus $22.50/month for the storage plus data transfer charges. So more than $83.70/month.
When I started writing the review the total capacity of the Lightning Network was slightly over 20 BTC (around $130,000). I decide to shake things up.By shaking things up Brekken means becoming the biggest node in the network by assigning to it enough Bitcoin to form over 15% of the total capacity.
The node has routed 260 payments for other users, averaging a profit of $0.0012 USD per transaction. I doubt that this will cover the costs of running the node, but leave the node running for now.So ln.shitcoin.com would need to route more than 70K transactions/month to cover its costs, or about 1.6 transactions/minute. Brekken concludes that:
Maintaining a Lightning Network payment hub is stressful and makes very little profit. Hopefully the risk will decrease and profit increase as the Lightning Network gains traffic.
Brekken concludes that:
Sending payments using the Lightning Network is cheaper than the regular Bitcoin network, but suffers from routing errors and wallet bugs that make it impractical even for highly technical users.Brekken leaves the node running for a week, then asks:
Are the funds still there? ... The funds are still there. My Lightning Node has routed 389 payments, making a profit of $0.34. I suspect the increase is mostly from the recent increase in bitcoin’s price. ... Running a large Lightning Network node has been quite stressful. An exploit such as we saw with heartbleed could allow an attacker to drain all funds from the node while I’m sleeping. It’s time to end the experiment.I think Brekken means "income" not "profit". If so, the income of the largest node in the Lightning Network is $0.34/week against costs of at least $21. He tries to gracefully close all the node's channels to recover the funds they are using, but some don't close, trapping the funds:
The remaining channels cannot close gracefully because the Lightning Node on the other side of the channel is offline. I force close these channels using lncli closechannel --force.That is between 1 and 14 days. It is hard to disagree with Brekken's conclusion that the technology isn't ready for prime time.
Closing a channel using --force results in a unilateral close which makes the funds unavailable to me. The amount of time the funds are locked up depends on the channel policy. This policy is negotiated when the channel opens. Most channels will release the funds to me in between 1440 and 20180 minutes.