Liquidity - Revision history

8go: added term Network Capacity

2019-02-01T13:42:22Z

added term Network Capacity

← Older revision		Revision as of 13:42, 1 February 2019
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	See also: [[Incoming liquidity]]		See also: [[Incoming liquidity]]

	In order to make payments, i.e. pass funds around, the path on which the payment is [[routed]] must have the necessary funds for the payment. If a route does not have the necessary funds the payment cannot go through. I.e. the [[route]] or the network is not [[liquid]] enough. Therefor it is important for a [[Lightning node]] to be well-connected because then better, or more [[liquid]], routes can be found.		In order to make payments, i.e. pass funds around, the path on which the payment is [[routed]] must have the necessary funds for the payment. If a route does not have the necessary funds the payment cannot go through. I.e. the [[route]] or the network is not [[liquid]] enough. Therefor it is important for a [[Lightning node]] to be well-connected because then better, or more [[liquid]], routes can be found. Liquidity is also sometime referred to as financial "Network Capacity".

	~~One can increase~~ [[~~liquidity~~]] by:		[[Liquidity]] is increased by:
	* starting a new [[Lightning node]] and giving funds (e.g. Bitcoins, Litecoins) to this node		* starting a new [[Lightning node]] and giving funds (e.g. Bitcoins, Litecoins) to this node
	* topping up the funds of an existing [[Lightning node]]. The [[Lightning node]] operator can place addition funds into ~~his~~ node.		* topping up the funds of an existing [[Lightning node]]. The [[Lightning node]] operator can place addition funds into its node.
	* creating a payment channel and placing funds into it, as in creating a wallet and placing funds into it		* creating a payment channel and placing funds into it, as in creating a wallet and placing funds into it

8go: typo

2019-02-01T13:19:13Z

typo

← Older revision		Revision as of 13:19, 1 February 2019
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	= Liquidity Growth =		= Liquidity Growth =
	* On [ https://www.youtube.com/watch?v=notjh3L9nSI November 19, 2018] the overall liquidity of the Lightning Network was around $1,000,000.		* On [https://www.youtube.com/watch?v=notjh3L9nSI November 19, 2018] the overall liquidity of the Lightning Network was around $1,000,000.
	* On February 1, 2019 the overall liquidity of the Lightning Network was 625.65 BTC or $2,169,594 (source [https://1ml.com/ 1ML]).		* On February 1, 2019 the overall liquidity of the Lightning Network was 625.65 BTC or $2,169,594 (source [https://1ml.com/ 1ML]).

8go: new page

2019-02-01T13:18:39Z

new page

New page

See also: [[Incoming liquidity]]

In order to make payments, i.e. pass funds around, the path on which the payment is [[routed]] must have the necessary funds for the payment. If a route does not have the necessary funds the payment cannot go through. I.e. the [[route]] or the network is not [[liquid]] enough. Therefor it is important for a [[Lightning node]] to be well-connected because then better, or more [[liquid]], routes can be found.

One can increase [[liquidity]] by:
* starting a new [[Lightning node]] and giving funds (e.g. Bitcoins, Litecoins) to this node
* topping up the funds of an existing [[Lightning node]]. The [[Lightning node]] operator can place addition funds into his node.
* creating a payment channel and placing funds into it, as in creating a wallet and placing funds into it

[[Liquidity]] is shown on certain [[Lightning Network explorers]] such as [https://1ml.com/ 1ML].

= Liquidity Growth =
* On [ https://www.youtube.com/watch?v=notjh3L9nSI November 19, 2018] the overall liquidity of the Lightning Network was around $1,000,000.
* On February 1, 2019 the overall liquidity of the Lightning Network was 625.65 BTC or $2,169,594 (source [https://1ml.com/ 1ML]).