Payment Channels

A general-purpose, public, and distributed HTLC network like Lightning may be at least a year away from becoming a reality, but a low-trust hub-and-spoke payment channel network enables fast, low-cost transactions that can be implemented today.

Payment channels are key for Privateland for two reasons: Worldwide purchases

Provide quality incentives for P2P server and content services

Today, the platform reduces the risk inherent in credit card payments: users trust the platform, not the app, with their payment details. With the payment channel, they can make purchases directly to the developer without the risk of identity theft.

Some parts of Privateland's infrastructure can be paid for with micropayments. This cost includes hosting the content, serving it, and running P2P protocols such as spatial audio processing for multiple users. The marginal cost of running an application on Privateland for a developer, given the incentivized server market to provide infrastructure, approximates the true cost as it's essentially a commodity. However, so that there are no barriers to entry for developers who enter, Privateland will subsidize this service with the proceeds from the sale of the PLand token.