In my view, this is the proper way to utilize payment chann…
In my view, this is the proper way to utilize payment channels:
Suppose there is paid Wi-Fi in the public areas of a hotel. Connecting to the network charges a set amount of sats per second or per minute. However, frequent small payments would result in excessive transaction fees.
With layered payment channels, the Wi-Fi usage fees for a full six hours are settled off-chain in the background. The final on-chain settlement is then completed on the main chain following standardized, proper procedures.
This approach eliminates the need for 6×60×60 separate transactions (billed by the second over six hours), and only a single transaction fee is required in the end.