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Murch
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Is centralization in the Lightning network inevitable? Why (not)?

Especially keeping in mind the possibility of single-funded channels (see Tadge's Google Doc Slides), buying from an exchange and concurrently opening a payment channel on the Lightning network would seem a particularly simple entry to the LN.

Exchanges and payment-providers would therefore seem to be in a natural position to become well-connected.

  • Is it fair to expect emergence of a network topology strongly centered around well-connected nodes such as the aforementioned and other liquidity providers?
  • What incentives are there for establishing additional connections with less well-connected nodes?
  • Is it reasonable to expect the network to "flesh out" with alternative connections around the center nodes?
Murch
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  • 641