Topic: Lightning Network is a banker scam part one - page 2. (Read 446 times)
Interesting viewpoint...
I'm confused, who pays the miner fee for opening/closing the channel? Isn't this split according to the funding ratio?
Regardless, even if they'd split the fees, it's quite expensive.
Regardless, even if they'd split the fees, it's quite expensive.
Transaction fee is one major thing which is preventing bit coin to be used more commonly and widely. The current transaction fees are very high (For eg: For doing a transaction of 0.002000 BTC, the transaction fee is 0.000500 (1/4th of the amount being sent). I wanted to learn the ropes of cryptotrading and started with a small amount of ~40 USD. But due to the high transaction fee, it is just laying idle without being transferred to a cryptocurrency exchange like Binance!
Was i to be you and looking for an adventure and wanting an education at the same time then I would
watch trades on Binance until you think you know the ropes of when to buy and sell and then have a
flutter and see if you can edge your way up a well oiled pole
it could provide fun for hours but if over a week you can turn $10 into $100 doing say 50 trades
buying and then selling then you know you have what it takes otherwise you know that it was not for you.
please come back and let me know if you get the $100 because I am looking for a trader like that
myself that i can team up with and then I won't call you a slot-machine player anymore
Transaction fee is one major thing which is preventing bit coin to be used more commonly and widely. The current transaction fees are very high (For eg: For doing a transaction of 0.002000 BTC, the transaction fee is 0.000500 (1/4th of the amount being sent). I wanted to learn the ropes of cryptotrading and started with a small amount of ~40 USD. But due to the high transaction fee, it is just laying idle without being transferred to a cryptocurrency exchange like Binance!
Interesting take on the Lightning Network. Based on what I have read, there seems to be a decrease in fee, but not in a big magnitude (it seems the fee reduction to be in the range of 10% to 50%).
Waiting for the 2nd part
Waiting for the 2nd part
Well i am hearing that Segwit wallets are only saving people 20% and not 50% and we should demand a reduction
in running cost since it's a second class service being "Off-Block" so they are back peddling really and other systems
that do scale can keep all transactions on-block.
Fees should be below $1.00 per transaction and that's high, never mind signing up with a bank who will themselves
be charged the BTC $30 mining fees if you close the channel and they have a credit on the balance sheet for your
account. No way on this earth will this work like they are making out unless you think some unknown middleman
is happy to incur a $30 cost just to ensure that you get your money.
Interesting take on the Lightning Network. Based on what I have read, there seems to be a decrease in fee, but not in a big magnitude (it seems the fee reduction to be in the range of 10% to 50%).
Waiting for the 2nd part
Waiting for the 2nd part
In this story it doesn’t sound like the transaction fees ended up any lower than they are now. I sure hope the lightning network wont be as useless as stories like this imply.
The Alice and Bob story with the Coffee shop is the fob off story the lightning team are using here and clearly
it won't work in reality for the reasons that I have listed and documented but in part two I will
cover the real deal of how it will work once people see the hubs for what they are, Banks and then
yes it could save you money but only if you open a bank account.............. err...... sorry........channel
and deposit you own coins by having locks placed on you BTC coins at the central banks .... err...... I mean
Bitcoin block-chain
Forget any talk about Bitcoin then being able to process 596 or a billion transactions per second even if we
ignore the hubs being banks and fees grandly increasing (Miner will run the banks) because the best this
"Lightning Network" will achieve in terms of performance increase is something like a factor of ten unless we
all significantly change our behavior and start acting like Bob the Builder because inter bank, sorry Hub settlement
will also add extra transactions to the Bitcoin main block-chain that can only process seven transactions per second.
oh yes anyone can close a channel (well for now anyway
) so if your in credit with a banking hub and you force the bank to send you $1 that is owed back to you so they get hit with the main block-chain $30 transaction fee then they are not going to be very happy so do read
the terms and conditions before signing any contract with bankers and watch out for credit agency checks.
So far I have assumed that locking coins on the main block-chain is free but the poor old miners not
getting $30 per transaction might well have other plans about that little free service
I am not sure this is how it works 100%, but I think you have some of it right. I felt the same way you did so I came up with http://cpay.today screenshots on facebook -> https://www.facebook.com/cpaytoday/ All support is appreciated.
My main goal is for instant free sending of crypto currencies.
My main goal is for instant free sending of crypto currencies.
In the promotional video shown below Bob wants to buy Coffee from a Coffee shop at $1.50 a day for the next month
(As if that's going to happen very often) so a channel is created between Bob and the Coffee shop and Bob
deposits (Locks coins in BTC Block chain) $40 in BTC into a multi signature account (Private off block ledger) that they both now share.
See https://www.youtube.com/watch?v=rrr_zPmEiME
Bob buys twenty cups of Coffee during the month and they both agree that Bob now owes the shop $30 so at the end
of the month the channel get closed and $30 is sent from Bob's BTC account to the Coffee shop but then Bob gets hit
with the miners transaction fee of $30 so each cup of Coffee has now cost Bob $3.00 a cup instead of $1.50
Being a modern day Bitcoin Lover Bob would also need to open Channels with his local grocery shop, food bar, Newspaper store
and at today's costs of $30 in transaction fees his expenses has gone up by $120.00 for the month.
if the bitcoin prices goes down during the month then all over sudden Bob the builder does not have enough finances in the
off block private ledger to cover the bills so by the end of the month he is having to go without his morning Coffee.
Now the propaganda really starts to pile on in the video because Bob has a friend called Alice who lives in the same street
and she also like to drink Coffee from the same Coffee shop as Bob and as miraculous as it sounds she purchased Bob's old TV
for $70 but because both Bob and Alice know each other she over pays Bob $30 for the TV so the channel between the two was kept open
for the whole month.
Alice ---------------------------- > Bob -------------------------> Coffee shop
Deposit $100 $50
This will now allow Alice to purchase Coffee from the shop but she likes breakfast at the same time so once again Bob
is out of luck long before the end of the month and now the BTC miners have managed to earn themselves $60 in fees
instead of the two just using regular cash and was Alice not to over deposit money in the Bob channel then this arrangement
becomes null and void.
Clearly the "Lightning Network" (LN) designers want this to look like a peoples bank (Bank of China is more like it) but for
obvious reasons it is not practical to use LN in the way they are suggesting it and they must think that the world of full of Bob the builders and Wendy's
so in the next part of the article we will cover Hubs and how they are really banks that will be charging fees on top of the crazy BTC miner transaction fees
Also read the link below from Coindesk if not totally convinced by now.
https://www.coindesk.com/lightning-network-may-not-solve-bitcoins-scaling-trilemma/
(As if that's going to happen very often) so a channel is created between Bob and the Coffee shop and Bob
deposits (Locks coins in BTC Block chain) $40 in BTC into a multi signature account (Private off block ledger) that they both now share.
See https://www.youtube.com/watch?v=rrr_zPmEiME
Bob buys twenty cups of Coffee during the month and they both agree that Bob now owes the shop $30 so at the end
of the month the channel get closed and $30 is sent from Bob's BTC account to the Coffee shop but then Bob gets hit
with the miners transaction fee of $30 so each cup of Coffee has now cost Bob $3.00 a cup instead of $1.50
Being a modern day Bitcoin Lover Bob would also need to open Channels with his local grocery shop, food bar, Newspaper store
and at today's costs of $30 in transaction fees his expenses has gone up by $120.00 for the month.
if the bitcoin prices goes down during the month then all over sudden Bob the builder does not have enough finances in the
off block private ledger to cover the bills so by the end of the month he is having to go without his morning Coffee.
Now the propaganda really starts to pile on in the video because Bob has a friend called Alice who lives in the same street
and she also like to drink Coffee from the same Coffee shop as Bob and as miraculous as it sounds she purchased Bob's old TV
for $70 but because both Bob and Alice know each other she over pays Bob $30 for the TV so the channel between the two was kept open
for the whole month.
Alice ---------------------------- > Bob -------------------------> Coffee shop
Deposit $100 $50
This will now allow Alice to purchase Coffee from the shop but she likes breakfast at the same time so once again Bob
is out of luck long before the end of the month and now the BTC miners have managed to earn themselves $60 in fees
instead of the two just using regular cash and was Alice not to over deposit money in the Bob channel then this arrangement
becomes null and void.
Clearly the "Lightning Network" (LN) designers want this to look like a peoples bank (Bank of China is more like it) but for
obvious reasons it is not practical to use LN in the way they are suggesting it and they must think that the world of full of Bob the builders and Wendy's
so in the next part of the article we will cover Hubs and how they are really banks that will be charging fees on top of the crazy BTC miner transaction fees
Also read the link below from Coindesk if not totally convinced by now.
https://www.coindesk.com/lightning-network-may-not-solve-bitcoins-scaling-trilemma/
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