Lightning Network

sames(66)
Published in
#bitcoin
Words
267
Reading
2 min
Listen
Play
6y

A little rant on it.

A lot of good people are working on the portcool. And yeah you see the new on possible LN flaw but not really big of a deal.
And contray to popular thinking big blocks aren't needed for LN to work good. More layers and thing like hper batching make the possbility of opening thousands of LN channel in one tx.
No the real issues of the LN are here:

  • Inbound liquidty: Basically in order to receive LN txs you need someone to prelock bitcoin in a LN channel to you. This is kinda of a service provider and can be made noncustodial but the risks of who renting what to who is not there. Some LN wallets(Breex and Phoneix) developed a business of where they open LN channel and then charge you small fees per tx. It does incentives future LN wallet work as it provides money incentives but the risk is to large for most people. Thing like Eltoo help inc LN security but requires a soft fork....
  • Chain security: LN and in turn small blocks limit miner income tx fee wise. Onchain tx fees will still happen but not as much if it was a onchain all chain.... Miners will move to things like attacking supply wise i.e getting new source of cheap energy and efficient Asic. If you can get a 0 cost energy you can run your Asic almost forever for profit after breakeven.

Lot of unknowns. Lot of waiting. LN can work but in turns introduces new game theory. I still like the LN.
End of rant.

Lightning Network | Ecency