https://lnbig.com/ #bitcoin The person behind the LNBig nodes ran the numbers and provided us with some very interesting statistics. They computed a capital efficiency metrics for some major nodes they're connected to, which is the sum of the sats sent and received by a given node over 24 hours, divided by the node's capacity over the same period. In other words, how much money flows in and out of a node with respect to how much capital they deployed to make such transfers possible. The higher this ratio is, the better, and of course the holy grail is to reach above 1, where each sat deposited in a channel on average facilitated more than 1 sat worth of economic activity.[1]
Interestingly, the #1 node on LNBig's ranking (per highest ratio) achieved to move more than 69 BTC (nice!) with a ratio of almost 4. This means they facilitated the transfer of 69 BTC with "only" around 9 BTC in channels, which is quite nice. Also note that the capacity visible to LNBig also takes unannounced channels into account: if you look at this node's public capacity, you'll find a "mere" 2 BTC, which could lead you to believe that this node achieved a whooping 3,500% capital efficiency. It did not.
Those numbers are interesting because, given LNBig's operations size, they could be a good proxy to the average capital efficiency of the network. On top of that, they provide yet another illustration as to why looking at the Lightning Network public capacity through the lenses of TLV is dumb: it doesn't measure what really matters (capital efficiency, or how much deployed liquidity is actually used in "payments") and, even if it did, it would grossly misrepresent it because unannounced capacity must be accounted for. Sorry, DeFi-maxis!
Jaki serial z odcinkami do 30 minut możecie polecić? Znalazłam Emily w Paryżu, ale nie za bardzo się wkręciłam. Może znacie coś fajnego? Lubię kryminały i horrory, ale nie musi być koniecznie ten gatunek :) #seriale #netflix
#bitcoin
The person behind the LNBig nodes ran the numbers and provided us with some very interesting statistics. They computed a capital efficiency metrics for some major nodes they're connected to, which is the sum of the sats sent and received by a given node over 24 hours, divided by the node's capacity over the same period. In other words, how much money flows in and out of a node with respect to how much capital they deployed to make such transfers possible. The higher this ratio is, the better, and of course the holy grail is to reach above 1, where each sat deposited in a channel on average facilitated more than 1 sat worth of economic activity.[1]
Interestingly, the #1 node on LNBig's ranking (per highest ratio) achieved to move more than 69 BTC (nice!) with a ratio of almost 4. This means they facilitated the transfer of 69 BTC with "only" around 9 BTC in channels, which is quite nice. Also note that the capacity visible to LNBig also takes unannounced channels into account: if you look at this node's public capacity, you'll find a "mere" 2 BTC, which could lead you to believe that this node achieved a whooping 3,500% capital efficiency. It did not.
Those numbers are interesting because, given LNBig's operations size, they could be a good proxy to the average capital efficiency of the network. On top of that, they provide yet another illustration as to why looking at the Lightning Network public capacity through the lenses of TLV is dumb: it doesn't measure what really matters (capital efficiency, or how much deployed liquidity is actually used in "payments") and, even if it did, it would grossly misrepresent it because unannounced capacity must be accounted for. Sorry, DeFi-maxis!