pull down to refresh

The risk isn't hack. You'd also want to define what you mean exactly by "holding Bitcoin in Lightning". Running your own lightning node? Public (routing) or private?

ok so what is the risk, running a public routing node?

reply

If you run a public routing node I'd estimate your risk is losing money because you don't know what you are doing, not because you are going to be hacked.

On-chain Fees: Opening and closing costs may exceed routing revenue.

Rebalancing Costs: Fees paid to move liquidity can outweigh earned fees.

Forced Closures: Unilateral closes trigger high-priority on-chain transaction costs.

Sweep Fees: Recovering funds from closed channels requires additional on-chain payments.

Hardware Costs: Initial purchase and eventual replacement of storage and components.

Electricity: Continuous power consumption for 24/7 node uptime.

Penalty Transactions: Losing all channel funds by broadcasting outdated states.

Opportunity Cost: Locked bitcoin cannot be deployed in higher-yield activities.

Negative Spreads: Setting outbound fees lower than the cost of inbound liquidity.

Darth may be a prick but he knows his shit when it comes to Lightning. I'd definitely at least throw a glance at his guides if you are thinking about running a public Lightning node.

reply

Thank you for this response

reply