
SLP490 Dusty - What is Splicing and why will it improve LN?
Stephan Livera Podcast
00:00
The Benefits of Splicing for LSPs
The idea is, I mean, another example might be you're a merchant and you've got all these channels, but all the balances on your side. With splicing, you remove the need for all of it. You put all the funds in lighting channels. If the channel is not performing, well, it's fine. Just put it on your first first to kill this. And so from a LSP service provider, wallet user, lightning node routing perspective, they are getting capital efficiency improvement. Yeah. It's like a submarine swap sort of concept or even kind of like a loop out concept, right?
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