Scaling Bitcoin LN to support millions casual users per single on-chain transaction.
Bitcoin can serve whole world.
https://lists.linuxfoundation.org/pipermail/lightning-dev/2023-September/004092.html
TL;DR
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* The key challenge in scaling Lightning in a trust-free manner is the creation of Lightning channels for casual users.
- It appears that signature-based factories are inherently limited to creating at most tens or hundreds of Lightning channels per UTXO.
- In contrast, simple covenants (including those enabled by CTV [1] or APO [2]) would allow a single UTXO to create Lightning channels for millions of casual users.
* The resulting covenant-based protocols also:
- support resizing channels off-chain,
- use the same capital to simultaneously provide in-bound liquidity to casual users and route unrelated payments for other users,
- charge casual users tunable penalties for attempting to put an old state on-chain, and
- allow casual users to monitor the blockchain for just a few minutes every few months without employing a watchtower service.
* As a result, adding CTV and/or APO to Bitcoin's consensus rules would go a long way toward making Lightning a widely-used means of payment.
