lightning-dev

Hold fees: 402 Payment Required for Lightning itself

Hold fees: 402 Payment Required for Lightning itself

Original Postby Joost Jager

Posted on: October 18, 2020 07:24 UTC

The discussion regarding trustless payment schemes for Lightning Network continues, with the focus on preventing resource abuse at HTLC relay.

One solution proposed is a reputation-based system, which can be achieved through a scoring system or web-of-trust. However, statistical observations are only probabilistic and don't provide resource consumption security to routing peers in a deterministic way. The efficiency evaluation of a reputation-based solution to deter DoS must be evaluated based on the loss of the reputation bearer related to the potential damage which can be inflicted. Another possible solution is where peers charge each other a hold fee for forwarded HTLCs based on the actual lock time and the HTLC value, separate from the routing fee that is earned when the payment settles. However, there are concerns about the long-term implications of a reputation-heavy system and its impact on liquidity and centralization. Node operators can implement trusted upfront payments without protocol changes. It is important to prioritize finding a good anti-DoS system for Lightning Network to prevent potential bias towards centralization as outside systems establish themselves.