Open main menu

lightningwiki.net β

Dual Funded Channels

Hands-helping-solid-with-text.svg
Please help by adding more information. Suggestion:
Explain more

In a dual-funded channel, party A would fund a channel with 0.1 BTC if party B also funds a channel with 0.1 BTC, this comes with cost: opening a channel requires an on-chain transaction and opportunity cost (of the capital committed). However, party B can earn routing fees, earned by merit of providing liquidity to the network.