Lightning Network liquidity rewards risk and compliance, Alex Bosworth notes

Lightning Network liquidity rewards risk and compliance, Alex Bosworth notes
Lightning Network incentivizes risk and security

Alex Bosworth explained how Lightning Network (LN) liquidity economics reward participants for taking on risk. According to Bosworth, users pay others for assuming risk by providing liquidity and also when moving funds into cold storage, which can be seen as paying for the deletion of liquidity.

He also suggested that another possible income stream for LN peers could be paying for the enforcement of security rules, linked directly to the total capital being protected through such measures.

Bosworth has previously highlighted that many public Lightning Network channels lack useful liquidity, with one-sided balances limiting transaction routing. He has also said that fiat interest rates may mislead savers, as real returns can turn negative without mandatory disclosure from corporations. His recent remarks continue his focus on liquidity and capital flows within decentralized networks.

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