Phoenix Introduces Splicing Technology to Reduce Fees in Lightning Wallet
Phoenix, the self-custodial Lightning wallet, has launched its third-generation wallet with splicing technology. This technology allows for the resizing of channels, eliminating the need for multiple channels per user and providing more predictability and control over incoming Lightning payments.
Key Points:
– Splicing technology eliminates the surprise creation of new channels and associated fees.
– Users now have a single dynamic channel, reducing fees and offering more control.
– Lightning Network operates as a network of bi-directional payment channels on top of the Bitcoin blockchain.
– Phoenix’s splicing technology allows users to add or remove funds from their channel without future risk.
– The new version of Phoenix replaces the 1% fee on inbound liquidity with a more transparent and cost-effective solution.
Trustless Swaps and Fee Reductions
In addition to splicing technology, Phoenix now offers trustless swaps directly in and out of the channel. Users can remove funds from their channel to a Bitcoin address with their chosen fee rate, and send on-chain transactions to their channel. The wallet also shows the fee for sending Lightning payments in advance, enabling users to validate fees before making transactions.
Bitcoin’s Lightning Network and the Surge in Fees
Bitcoin’s Lightning Network is designed to enable fast and cost-effective micropayments, addressing the slower transaction speeds and higher fees associated with Bitcoin’s mainnet. Lightning wallets like Phoenix have been looking for ways to reduce fees since the Ordinals protocol gained prominence, causing a surge in transactions and fees on the network.
Hot Take: Splicing Technology is a Game Changer for Lightning Wallets
Phoenix’s introduction of splicing technology is a significant development for Lightning wallets. By allowing users to resize channels and reducing the need for multiple channels, Phoenix offers a more efficient and cost-effective solution for Lightning payments. With trustless swaps and fee transparency, Phoenix sets a new standard for Lightning wallets. Other wallets are likely to follow suit in implementing splicing technology to improve user experience and reduce fees.
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