Fees - Lightning Network vs. Bitcoin Cash

I have heard, over and over, that all we had to do was, wait, for the Lightning Network, to see a reduction in fees. Since I could not get any direct data from Core supporters about costs to open and close channels and fees. I have been doing tests, using Testnet and Mainnet. With the recent release of the Lightning Network Beta and no noticeable adjustment in fees, I figured it was time to post some of my NON scientific findings.

I will be using the Testnet, Éclair Wallet and Starblocks test site, for this example, to give the Lightning Network an advantage(cheapest fees).

In order to make the Starblocks purchases equal to a more life-like Real USD value of a Starbuck’s mocha it required 29 Scala Chips(first 2 transactions) and 36 Blockaccino(remaining 8) all of these are fictitious drinks the final purchase price came to $4.71 to $4.74(USD). This was slightly cheaper than the price of a Mocha at my Nearest Starbucks of $4.75(USD).

All this uses VERY BASIC MATH . Don’t stress. I know I did. If you find an error in my math please let me know.

Lightning Network

Opening a channel

I placed $47.63(USD) or 0.00553719(bitcoin) in the channel – Fee to open $2.322335461(USD) or 0.00027072(bitcoin) – see block explorer here

Next transactions

Cup 1 – got stuck pending(29 Scala Chips)

Cup 2 – Successful – fee 15 Satoshi (29 Scala Chips)

Cup 3 – Successful – fee 15 Satoshi (36 Blockaccino) Cup 4 – Successful – fee 15 Satoshi (36 Blockaccino) Cup 5 – Successful – fee 15 Satoshi (36 Blockaccino) Cup 6 – Successful – fee 15 Satoshi (36 Blockaccino) Cup 7 – Successful – fee 15 Satoshi (36 Blockaccino) Cup 8 – Successful – fee 15 Satoshi (36 Blockaccino) Cup 9 – Successful – fee 15 Satoshi (36 Blockaccino) Cup 10 – Successful – fee 15 Satoshi (36 Blockaccino) Revisit cup 1 - Two attempts – failed due to routing error? Compensated math for just 9 cups, and because I was too lazy to start all over again.

Lightning Network fee total for all transactions 0.00000015(bitcoin)*9(cups)=0.00000135(bitcoin) or $0.0115275406(USD) for each Mocha multiplied by 9 cups = 0.00001215(bitcoin) or $0.1037478656(USD)

Closing the Channel

Since there now SEEMED to be 'stuck funds' due to the pending transaction, I was worried, due to the “Pending” transactions, we would close as uncooperative, but it seemed to work. You can see the Block Explorer Transaction here

Fee to close 0.00026113(bitcoin) or $2.2297679131(USD)

Let’s figure out how much, in fees, each Cup of Coffee Costs on the Lightning Network?

Open($2.32)+Close($2.22)+LN Fees($0.10)= $4.64 in fees for 9 cups or $0.5155(USD) per cup





Bitcoin Cash

A single on chain transaction for $4.75 Cost me 0.000002(BCH) in fees or $0.0019(USD) let’s round this up and again give Bitcoin Cash a disadvantage, to $0.01(USD) and in fact because Bitcoin Transactions don’t FAIL or Get stuck in pending. We will use all 10 cups to determine the Bitcoin cash fees.

$0.01 fee * 10 cups = $0.10(USD) for all 10 cups in Bitcoin Cash Fees

Let’s Compare

Lightning Network $0.51(USD) Per cup vs. Bitcoin Cash $0.01(USD) Per Cup





In conclusion

It costs $0.50(USD), per cup, more, to use the Lightning Network, to buy 9 Starbucks coffee’s to Bitcoin Cash’s 10 Cups





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