Ethereum: How are fees determined in the Lightning Network?

How do I set up a network payments?

Flash Network (LN) is a decentralized open source payment system that allows for fast and cheap events between different blocks of circuits. In order to facilitate these events, the network depends on the complex mechanism of awards control, which may be sudden at the time of valuable events. In this article, we examine how the awards are determined by the Salama network.

The role of nodes mempules

The Node Mempools are a collection of knots that record and transmit events between different blocks of circuits. Each node has its own Mempool, which contains some events waiting for processing or transmission. Mempools act as the first, first (FIFO) line, to ensure that all awaiting events are being dealt with by accepting them.

Payment mechanism

To determine the payments of the Flash web events, the nodes use the algorithm method based on the following factors:

1

  • The value of the event : the value of each event.

  • Node load : Current node memory and processing power.

4

algorithm

Ethereum: How are fees determined in the Lightning Network?

The algorithm used to calculate payments is based on a simple linear price model:

  • For each 10 million currency units (e.g.

  • If the knot has sufficient capacity and load, it will be able to handle more events without cleaning its Mempoo. In this case, the node deserves taxes collected from these events.

Example

Let’s say we have a Mempool knot with 100,000 units of ether and a total of 10 million currency units. The algorithm will calculate the payment of each event as follows:

  • The first $ 9.99 million Units (ie 999,900 events) is one unit for each event.

  • The remaining 0.01 million Units (ie 100,000 events) fees are 1/10 per unit of event.

In this example, the node earns about $ 9.99 for every first class event and $ 1 per second class.

Conclusion

The Lightning Network payment mechanism is designed to ensure a fair and efficient transfer of funds in different block circuits. Calculating payments based on factors such as operation, value, load and capacity, nodes can optimize their use of Mempool and reduce the financial burden on valuable operations. While this algorithmic approach may seem complicated, it ensures that all participants in the network have a reasonable opportunity to participate in interchain operations at a reasonable price.