Topic: Lightning Network -- Is it GOOD? - page 2. (Read 408 times)

best way to think about it
bitcon is gold. LN is bank notes

to move gold costs you, say $2 meaning at a 1% fee. most people wont want to move less than $200 of gold without incuring more than 1% loss due to fee's

however you can deposit your $200 of gold into a bank and have banknotes to trade in a banknote community where it only costs you maybe 0.1cent fee. so now you can spend 10c-$200

however remember to get a bank note. vaulting up your gold costs you $2 and unlocking your gold cost you $2
so remember it costs you $4 in total to use the bank note system . but then you can enjoy small spend denominations of 10c+ once in that community

..
the flaws are its not a pay the destination system and have everyone audit your payment
its a pay your nextdoor neighbour who pays the milkman who pays his wife that works at the destination

so you have to be reliant on your
naighbour having funds to pay forward
milkman having funds to pay forward
wife who has funds to pay forward

..
this bottlenecking of routes due to lack of funds. then causes centralised hubs with large bank note accounts to route the payment and by pass the friend-friend-fried-friend route

next up is if everyone was to do a friend-friend network they would need to have 5 different friends to have 5 different possible routes to destination where each friend has 5 friends
this means you are not putting $200 into one bank account but puting $40 into 5 accounts each
meaning you can only spend $40 in any direction

again this leads to people prefering to be linked to a hub(bank) that has large reserves so that you can just have one route via them. and let them manage the route so that you can have your whole $200 in one account

the next flaw is that you wont want to have to pay $4 to close and reopen your account every couple months as thats then like having a $4 membership subscription just to use paypal
so what you do is near the end of the month. you swap out your bank notes.. not to exit with gold. but instead to exit and return with silver(ltc) as the close-reopen fee is alot less.
so now you have given up your gold pegged bank notes. given up your gold and now playing with silver(ltc) and silver based bank notes.

and thats the whole game theory hope of the LN kings.
they want people to deposit in gold and then swap out to silver so that the hubs get to keep the gold(btc)

(institutional banks done this with gold<>bank note 1870-1970 and then didnt want to honour gold returns)
LN hopes to do this with btc<>millisats in ~10-20 years, where eventially millsats can only be converted to altcoin)

Don't believe everything you read on Twitter

Instead, you should try LN for yourself. Get a wallet, see how it works. Make some payments, enjoy the low fees

It seems that these two contains a lot of misinformation. To the OP I urge you to read this three threads to have a good understanding of what LN is:

1. A Beginner's guideline to Bitcoin Lightning Network by @RapTarX
2. The Lightning Network FAQ by @Rath_
3. Basics of the Lightning Network by @Rath_

For daily transaction it will good like buying coffee or pay metro

You don't want to buy 5$ coffee with 10$ fee right but off course it will have negative side

Using lightning helps to save and fast payment. I thought the lightning network solution didn't work out because people are more used to transactions on the traditional Bitcoin network than on the lightning network. You can refer to the lightning network topic at the link below.

https://bitcointalksearch.org/topic/the-lightning-network-faq-5158920

It is also possible to pay with Bitcoin wrap solutions from other blockchains. This hasn't been tried yet but I think it would be nice if there was support for it.

It is good because it is a way for people to finally make use of BTC for day-to-day spending. However, in fairness, I think there are indeed certain legitimate concerns about LN, at least as far as my understanding is concerned. The mere fact that we have now resorted to make transactions off the Bitcoin network is a compromise already.

Anyway, I think you are referring to a different tweet. You must be referring to this one https://twitter.com/4stepstofluency/status/1404482153367412742.

We could probably say that it's a teeny tiny bit more centralized(or probably less trustless is a better word). But then again, you don't store all your funds on a LN wallet.

Compared to the Bitcoin main chain, sure. LN's still not that battle tested.

Which.. is not a bad thing? Lightning is for day-to-day payments, and I'd probably prefer a non-public ledger.

Cold storage funds on main chain, day-to-day spendings on a Lightning wallet.

Everything is a narrative just for BTC to go up for the FUDster.

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P.S. If you want to try Lightning out but you don't want to do anything technical: https://bitcointalksearch.org/topic/opinions-on-phoenix-wallet-5250677

The Lightning Network is not centralized and a third party isn't required to guard your bitcoins. The lightning node exists to maintain the success of the transactions between two (or more) parties. But, some people don't understand that it doesn't control your money. Obviously, if it could do whatever its owner wanted, it wouldn't differ from the traditional banking system.

To cut a long story short, when you open a channel, you lock your funds on a 2-of-2 multisig address that requires both signatures, yours and the node's, to spend from. In other words, the node can't steal your money if you don't agree with it.

FUD.

The issues that is pointed out can all have an easy solution also LN is a good solution for the speed which is going to be detrimental for bitcoin in the future with more people adapting to it as time goes by.

from here: corrected link below
https://twitter.com/4stepstofluency/status/1404482153367412742?s=20

Just interesting, I was hearing about the lightning network and about how it was going to solve all the network, speed and cost problems with transactions, what are your thoughts?  Centralized and no good, centralized not an issue, or what?  For me I thought it was a great advancement until I read this....