Blockstream has rolled out the 'Splicing' feature in its Core Lightning implementation, allowing for liquidity modifications in Lightning channels. This development follows ACINQ's Splicing introduction last month, which saw 'Eclair' users enjoying a 60% drop in Lightning transaction fees.

The introduction of Splicing is anticipated to address the long-standing issue in the Lightning network: liquidity limitations. Such limitations have consistently been identified as obstacles to mass adoption, hampering smooth transaction operations. 

Through Splicing, Blockstream seeks to mitigate these liquidity issues, aiming to offer Lightning users more cost-effective and dependable transactions.

Lisa Neigut, a developer with Blockstream stated that "one of the biggest pain points for Lightning users is unreliable transaction throughput—channel liquidity constraints are a big part of the equation there. Splicing is an incredible new tool for alleviating liquidity constraints, which should result in making transactions significantly cheaper and more reliable for users."

Additionally, Splicing profoundly influences the idea of "unified wallets." In the past, individuals had the task of overseeing distinct Bitcoin and Lightning funds in wallets, introducing complexities. 

With Splicing's debut, these two balances can merge effortlessly, making the differences between Bitcoin and Lightning funds mostly indistinguishable for users.

Dusty Daemon, the primary contributor to Splicing, emphasized the user-focused approach of this innovation by stating that "the goal is to make wallets ‘just work’ instead of users having to bear the brunt of managing different account balances for different protocols. In the future, everyday users won’t need to understand the difference between Lightning and Bitcoin—these protocols will simply be ‘spliced’ together on the backend."

Dusty Daemon, in collaboration with Blockstream colleagues Lisa Neigut and Rusty Russell and ACINQ's CTO Bastien Teinturier, developed the Splicing feature. 

Private grants and donations, including a recent gift from OpenSats, a Bitcoin-focused non-profit partly supported by Jack Dorsey, have funded Daemon's work on this feature.

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