- Payment channels are a widely pursued layer 2 scaling solution
- But they only solve for bidirectional payments (between the two parties who open the channel)
- What if we build a payment channel network?
- Naive solution—every pair of parties (N^2) opens a channel with each other
- But then we need to lock up an exorbitant amount of capital in all these channels
- Instead, let's open a few channels for each party
- Naive solution—every pair of parties (N^2) opens a channel with each other
- And rely on other intermediary channels to reach the intended receiver