How Does the Lightning Network Charge Fees?

Intro

When setting up payments, a direct channel between you and the recipient might not exist. The network searches for payment paths between you and your destination, incurring node fees as transactions flow through.

OneKey's Free Policy

We boast the lowest fees among existing Lightning Network nodes — base fee and fee rate cut almost to zero.

What's Base Fee?

A fixed fee charged by the node for each transaction, irrespective of the transaction amount. It covers the computational and storage costs incurred by the node for each transaction. You could check OneKey's base fee on 1ML

What's Fee Rate?

The fee rate is the proportion of sats charged for each sat on the transaction invoice. It compensates for the liquidity provided by the node in the channel. You could check OKX's fee rate on 1ML, which is 500 ppm (0.000500 sat/sat).

Take an example

You use the Lightning Network on the OneKey App to transfer funds to a certain project. However, there is no Lightning Channel between the OneKey node and the project in question. In this case, when you pay the invoice, you may need to route the transaction through the OKX node. Keep in mind that OKX is not a free node, so a small fee will be incurred (Base Fee + Eate Fee). In other words, when using the Lightning Network on the OneKey software wallet, it will at least save you the cost of one node.

 

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