In the last few years, I’ve worked tirelessly to implement the splicing protocol and been one of the very few teams working to add it to the Lightning specification. As a result of these community efforts, it is now possible to build on top of Splicing.
Splicing is the ability to mutate Lightning channels in real time. This enables the free flow of funds into and out of a Lightning channel while it is in use. Crucially, the flow of these funds is done in a merged style of transaction. Splices are inherently joined together into one transaction. This provides enormous privacy benefits onchain, as well as savings for onchain fees and a more efficient use of blockspace (less transactions happen because they’re joined together into a single transaction).
Merging disparate transactions into one is the holy grail of privacy. There are several other projects that aim to achieve this goal (Wasabi protocol, PayJoin, joinmarket) but none have the distributed footprint and usage for everyday pay