Lightning Network fees

 

Lightning Network fees

Bitcoin Lightning Network Transaction Fees

The Lightning Network allows nodes to charge fees for routing payments, but these fees are much lower because nodes don't have to solve a cryptographic puzzle. There are two types of fees in the lightning network:

1. Basic fee 
2.  Liquidity provider fee.

 

There are no miners on the Lightning network, and all fees go to the node that routes the payment. The Lightning Network is set to compensate people for providing liquidity to the network. A user with a Lightning node can set fees that other Lightning nodes must pay to use the user's funds for routing.

 

• Basic Fee: The basic fee is the fee charged when a transaction is routed through a node. This is a flat fee that the node user sets based on how much they think they are worth.

• Liquidity Provider Fee – This is a fee based on is calculated based on the liquidity a user has in the channel. It's a fee based on how many SAT are sent through a payment channel. For example, if the lightning provider's tariff is 1 sat per 100,000 SAT, this would cost the user a payment of 1 sat per 100,000 SAT..