15 votes
Accepted

"HTLCs don't work for micropayments"?

It takes about 200 vbytes to spend from a Lightning Network (LN) Hashed Time-Locked Contract (HTLC) output used for routing a payment. At the default minimum feerate of 10 nBTC/vbyte, that makes it ...
user avatar
8 votes

"HTLCs don't work for micropayments"?

A very low value output in Bitcoin (or any similar system) has zero actual value because the cost in fees to spend it would be equal to or greater than the coins it provides. Like someone writing you ...
user avatar
  • 7,519
6 votes
Accepted

How to cheaply melt many micro UTXOs?

There's no free lunch. You can spend all the UTXOs in one transaction to spread the output bytes across many inputs, but each input still needs a certain number of bytes. To my knowledge, there isn'...
user avatar
6 votes
Accepted

Micro-payments definition and ideal platform

I do not think there is anything to reach consensus on. very small payments (in relation to the transaction fees) they belong to neither (some developers will create a micro-payment solution on the ...
user avatar
  • 2,204
5 votes
Accepted

Will lightning network efficiently support a single payment of 25 cents?

First off, yes, the lightning network will not require 1000 on-chain transactions added to the blockchain. The lightning network aggregates off-chain transactions into single on-chain settlements. ...
user avatar
  • 8,734
4 votes

Can the Lightning Network work and live independently from Bitcoin?

No, not without any transactions. The Lightning Network is based on so called channels between 2 users. The creation of this channel has to be broadcasted to the blockchain (and another transaction ...
user avatar
  • 141
4 votes
Accepted

Payment channels with dynamic signatures

It's possible for Alice and Bob to agree among themselves to pay Carol and any number of other recipients (subject to limits on transaction size). However, it's not possible for Carol and other ...
user avatar
4 votes

BlockCypher MicroTX transaction fee?

The Microtransaction API documentation it describes a BlockCypher MicroTX as a normal transaction. BlockCypher just checks that the transaction has reached 98% on their confidence-factor and is ...
user avatar
  • 1,372
4 votes

"HTLCs don't work for micropayments"?

An htlc is a small output in the commitment transaction. As with any output it needs to be bigger than the dust limit. In particular if the amount is smaller than the expected on chain transaction ...
user avatar
3 votes
Accepted

Clarification about lightning network

When I set up a lightning channel with a node, have I need to put some bitcoins in it? Generally, yes. The person who initiates the channel creation process (i.e. the person that says "I want to open ...
user avatar
  • 62.4k
3 votes
Accepted

"state channel" v.s "micro-payment channel" : are they the same?

Payment channels are a specific form of state channels used for forwarding payments (as in the Lightning network). State channels are a more abstract idea: In theory you could use the ideas of ...
user avatar
3 votes

How the disposable private keys are being shared in Lightning Network?

So the question is if it would be unfair to Alice if: Bob wouldn't reveal his secret information and Bob broadcasts the previous commitment transaction Now, the only case in which Bob would ...
user avatar
3 votes

Will lightning network efficiently support a single payment of 25 cents?

The lightning network could potentially allow you to do this. It would not help if each (or many) of your 1000 customers wanted to open a payment channel with you to pay for an emoji. This would ...
user avatar
  • 62.4k
3 votes
Accepted

Same entity controlling separated parts of a a lightning path

The preimage R is the same throughout the entire route, so Bob/Dave would know what R is (from lnd Overview). However if Bob were to broadcast his commitment transaction for the Bob -> Carol ...
user avatar
  • 62.4k
3 votes

What cryptocurrency is most suitable to send small amounts?

Other chains might be off topic here, but Bitcoin offers you at least two options. You can choose one from three, the first two are Bitcoin: Enhance your calm. Using minimum fees it'll take longer, ...
user avatar
  • 438
2 votes

How do I get the originating address using Blockchain.info's recieving API?

You can use blockchain.info's API to look this up, specifically you're looking for the inputs of the "input_transaction_hash" tx: https://blockchain.info/rawtx/...
user avatar
2 votes

Is there an easy way to consolidate Dust Microtransactions

Let's take a step back and define dust: dust is an transaction output with a very low value. When creating an input to a new transaction that spends that output, you have to use 36 bytes to reference ...
user avatar
2 votes
Accepted

Does Bitcoin's high price make payments in stores less viable?

Bitcoin for Point-of-Sale Bitcoin is inherently ill-suited as a form of instant payment. This is due to transactions needing confirmations before they become reliable which even at best times can ...
user avatar
  • 64.5k
2 votes
Accepted

On the feasibility of fees

1) Bitcoin is a gossip network in which each (full) participant checks all activity of all other (full) participants. Such systems scale notoriously badly as the cost for each network event scales ...
user avatar
  • 64.5k
2 votes

How to cheaply melt many micro UTXOs?

Depending on your time-restraints, you either have to pay the market's current fee rate, or wait until the block space demand is low enough to include your transaction at a much lower fee rate. Nate ...
user avatar
  • 64.5k
2 votes
Accepted

Is it possible to connect to BTCPay server remote c-lightning node?

Port 9735 is the lightning port. What BTCPay wants is the API. C-Lightning does not support TCP natively, but one can use socat as I did in the docker entrypoint to bridge unix to TCP.
user avatar
2 votes

Other than relying on "side-chains", is there any way that Bitcoin could solve "micro transactions"?

The main challenge is that any transaction that is transacted on the main chain will have to be stored on the blockchain in perpetuity, and processed by all full validating Bitcoin nodes. To my ...
user avatar
  • 2,002
2 votes

What cryptocurrency is most suitable to send small amounts?

With lightning you can send 1 sat (or even less) and there is almost no fee.
user avatar
  • 171
1 vote

Required conditions to be selected as intermediary node (Payment Service Provider) in Lightning Network?

Note that this video is made by shitcoin paddlers trying to spread FUD. If I remember correctly the further episodes are much much worse. "There's no way to add more beads or take off a portion of ...
user avatar
  • 6,218
1 vote
Accepted

Sweeping funds from addresses generated by Extended Private Key (BIP39)

I know Bitcoin has this concept of "sweeping" funds. Does that still involve incurring a flat fee for every address generated by the master private key? No, sweeping an address involves inputting a ...
user avatar
  • 17.4k
1 vote

Payment channels with dynamic signatures

The main problem I see with this is increased complexity, and possible collusion between 2 of the 3 parties. If Carol is now required to sign updates, what does Alice do if Carol is unresponsive? ...
user avatar
  • 8,734
1 vote

Wasted satoshi due to transaction fees

Is it BreadWallet? You can restore that in Mycelium, afaik. As to your actual problem: just leave it, file the seed words somewhere safe, and maybe one day it'll be worth actual money.
user avatar
1 vote

I want to change 0.25 dollar cents in bitcoin for my digital content, is it too little?

Bitcoin transaction fees vary with supply and demand. You can see a current snapshot at https://bitcoinfees.21.co/. Right now a typical fee for a transaction is around BTC 0.0006. As you can see, ...
user avatar
1 vote

I want to change 0.25 dollar cents in bitcoin for my digital content, is it too little?

currently that's not feasible with bitcoin due to its price. The alternative is to use another coin with a lower price to make it truly a "micro-transaction" with sub-penny fees. But the problem with ...
user avatar

Only top scored, non community-wiki answers of a minimum length are eligible