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The Impact of Layer One Fees on Lightning and Channel Management
Jesse: The inscription stuff that's been happening on layer one. This has made the fees really blow out and get much higher. It's costing a lot to actually create this new infrastructure. Despite the higher fees that are being paid, there's still an opportunity to earn yield by setting up this infrastructure.
Preston Pysh talks to Bitcoin layer two Lightning expert Jesse Shrader on the show about all the fascinating stuff they have going on with their Amboss website. Amboss is a website that analyzes all the Bitcoin full nodes and immediately settling channels that are open between the nodes on the network.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:43 - How did Jesse get into Layer 2 Lightning Bitcoin?
03:07 - How Jesse's background in class action lawsuits against big banks impacted the way he views Bitcoin.
05:10 - How Jesse and his founder initially designed Amboss.
05:10 - What were they trying to optimize for when they built Amboss?
05:10 - What was Lightning like in the early days when opening channels?
11:59 - How has the business plan changed for Amboss?
14:43 - Is inbound liquidity an issue for Lighting adoption?
24:37 - Comparison between the legacy financial system and Lightning.
30:44 - What is Magma's liquidity market?
32:55 - How could Bitcoin even have a "risk free" rate?
34:19 - What is the LINER (Lightning Network Rate)?
34:19 - How could the LINER impact risk free rates?
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