Ok good. We have established it to be a non-trivial cost. Now, what is the growth complexity of the total cost of the network in terms of number of connections each hub has to other hubs? And then, consider a payment channel with many hops in it. The end-to-end users would have to swallow all the costs of the hubs in the channel. On 9 August 2015 at 22:57, Patrick Strateman via bitcoin-dev < bitcoin-dev@lists.linuxfoundation.org> wrote: > The costs of operating a hub are as follows: > > Time value of the funds the Hub has locked up in payment channels. > Enhanced risk of loss of control of private keys (the keys necessarily > need to be on an internet connected system). > Operating costs (I expect this will be minimal). > > The hub can charge a fee for it's services to recoup these costs. > > > On 08/09/2015 02:45 PM, Hector Chu via bitcoin-dev wrote: > > Tom, my understanding is that the money that is debited from a payment hub > is simultaneously credited from either another payment hub or the person > making the payment, so that the net funds flow at a payment hub always sums > to zero. So no, there is no credit advanced by the payment hub to anyone. > > Given Mark's previous answer of using CPFP and other tricks to pay for the > Bitcoin transaction fees, we can assume that Bitcoin fees do not play a > part in the payment channel balances. > > So, the interesting question is what are the costs of running a payment > hub? The tx fees that a payment hub would have to pay to settle its Bitcoin > transactions would be passed on as a cost to the clients of the payment > hub. Also there is a cost to locking up funds in a payment channel (time > value of money). The lost interest or opportunity cost on those funds would > need to be paid for by its clients as well. And don't forget normal running > costs such as networking and electricity. > > On 9 August 2015 at 22:27, Tom Harding via bitcoin-dev < > bitcoin-dev@lists.linuxfoundation.org> wrote: > >> On Aug 9, 2015 11:54 AM, "Mark Friedenbach" wrote: >> >> > On the contrary the funds were advanced by the hub on the creation of >> the channel. There is no credit involved. >> >> That's a chuckle. >> >> As I said, nothing requires the hub to advance anything, and if it does, >> Bob can expect to pay for it. >> >> We'll see whether hubs assess a fee for depositing funds, whether the fee >> depends on the amount deposited, and whether it depends on the amount of >> time it stays there. >> >> I predict "all of the above." There is a name for these kinds of fees. >> Can you guess it? >> >> _______________________________________________ >> bitcoin-dev mailing list >> bitcoin-dev@lists.linuxfoundation.org >> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev >> >> > > > _______________________________________________ > bitcoin-dev mailing listbitcoin-dev@lists.linuxfoundation.orghttps://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > > > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > >