How does loop work?

by Dmitry Laptev   Last Updated July 11, 2019 19:27 PM

Lightning loop is a great non-custodial way to do submarine swaps in both directions. However I would like to clarify some questions about how it actually works.

There is a closed source server side of the loop, controlled by lightning labs. Which lightning nodes is the server side running on? Does that mean that I will only ever be able to rebalance the channels that are a part of the path from my node to theirs?

Second question is more about the software architecture. Why do I need a daemon loopd to always be running in the background? Seems like the server side should be of course always online, but why ask the clients to do that?

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