Merge pull request #376 from 8go/patch-87

e2e-presentation-layer: added non-finance use case
pull/403/head^2
Andreas M. Antonopoulos 4 years ago committed by GitHub
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@ -112,9 +112,17 @@ Lightning transactions, on the other hand, settle instantly and so are better fr
**Earning "interest" on Bitcoin trustlessly**
While Bitcoin may increase or decrease in value in terms of fiat currencies, it is an asset that does not offer a return in and off itself simply by holding it.
The amount of Bitcoin one holds remains constant, and actually decreases as one moves it around due to transaction fees.
Third-party services exist that provide interest on Bitcoin, but these services are in general not trustless.
Those wishing to earn a return on their Bitcoin holdings _trustlessly_ can do so by opening channels and routing payments in return for routing fees.
This way, users can earn a return (i.e. "interest") by locking their Bitcoin into channels and offering liquidity to other users wishing to transact on the Lightning Network.
Users doing so will need to pay the fees to open and close channels, as well as the cost of maintaining any hardware and network infrastructure to run a Lightning Node.
However, as channels can be left open indefinitely, they _could_ earn a profit as long as there are sufficient users of the Lightning Network such that their routing fees are in excess of their channel fees and maintenance costs over the long term.
This is trustless as users do not need to loan or send anyone their Bitcoin. Users only need to take on the efforts and risks of operating a Lightning node and storing Bitcoin in a hot wallet.
**Use Cases outside of Finance**
The Lightning Network's principal object is to move payments across a network.
Could it move data other than payments across its network too? It can.
Some projects such as _Whatsat_, _Sphinx Chat_, and _Juggernaut_ are implementing instant messaging chat apps on top of the Ligtning Network.
One can imaging other types of data such as electronic tickets, QR codes, or other forms of tokens flowing across the Lightning Network as well.
The use cases are limited only by our imagination and reach beyond finance.
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