LightningNetwork+ on Nostr: What is #bitcoin #lightning "Splicing"? Splicing is transferring funds from on-chain ...
What is #bitcoin #lightning "Splicing"?
Splicing is transferring funds from on-chain outputs into a payment channel or from a payment channel to independent on-chain outputs without the channel participants having to wait a confirmation to spend the channel’s other funds.
In practice, that means with splicing you can add or remove bitcoin from your #LightningNetwork payment channel without the need to close the channel and create a new one entirely. It is making for a more dynamic LN experience.
Splicing comes in 2 varieties:
1. "Splice In" means adding funds to a channel. In this case, a cooperative close of the channel is arranged between the involved parties that spends the old channel funds to a new channel along with the new deposit.
2. "Splice Out" means removing funds from a channel to an independent on chain output. Similar to splice-in, the channel is closed, and a new channel is opened, with the remaining funds being secured by the old channel’s security until the new channel has been confirmed.
Splicing is different from submarine swaps (ex Lightning Loop), where funds are transferred between users in exchange for on-chain transactions—in submarine swaps, the overall capacity of the channel stays the same; in splicing, the overall capacity of the channel changes.
Splicing is transferring funds from on-chain outputs into a payment channel or from a payment channel to independent on-chain outputs without the channel participants having to wait a confirmation to spend the channel’s other funds.
In practice, that means with splicing you can add or remove bitcoin from your #LightningNetwork payment channel without the need to close the channel and create a new one entirely. It is making for a more dynamic LN experience.
Splicing comes in 2 varieties:
1. "Splice In" means adding funds to a channel. In this case, a cooperative close of the channel is arranged between the involved parties that spends the old channel funds to a new channel along with the new deposit.
2. "Splice Out" means removing funds from a channel to an independent on chain output. Similar to splice-in, the channel is closed, and a new channel is opened, with the remaining funds being secured by the old channel’s security until the new channel has been confirmed.
Splicing is different from submarine swaps (ex Lightning Loop), where funds are transferred between users in exchange for on-chain transactions—in submarine swaps, the overall capacity of the channel stays the same; in splicing, the overall capacity of the channel changes.