https://blog.bitgo.com/malevolent-malleability/ <-- I see here a list of how folks who didn't know what they were doing could make mistakes, and a conclusion: "The general consensus up to this point has been that malleability is an annoying but not critical system-wide problem. "
Anyway, if for some reason you can't figure out a way to actually check that funds have been sent and arrived at the proper address, or to not reference any TXs by number, you can always pay a miner a few extra milliies to put your TX with exactly the bit order you like into the block just where you want it.
The whitepaper details it a bit more. In laymans terms, tx malleability allows interesting and complex attack vectors on non-confirmed transactions. Since the Lightning network is a caching layer where contracts are made between lightning nodes before confirmations appear than one has to assume all implications in a hostile environment. Fixing malleability allows for decentralized and untrusted parties to cache these tx's. In order to cache tx with malleability than one has to have centralized sources of trust which basically amounts to a coinbase/circle model of off the chain txs. Centralized off the chain solutions do provide a valuable service to our ecosystem but have heavy inherent regulatory, human , and insurance overhead. If bitcoin is to compete with other payment systems and fullfil its true vision it must eliminate these inefficient and corruptible sources of security.
It seems that's the main reason here, so let's drop Lightning Network
If a clearing based solution, require so much change to bitcoin's architecture, then it must be able to provide lots of benefit to worth the risk. Currently I don't really see a big difference between lightning network and traditional clearing solutions, which require no changes for bitcoin at all
BTW, I just heard that Adam Back said that you need insurance for lightning network to work properly (https://www.reddit.com/r/bitcoinxt/comments/3wty7s/dr_adam_back_believes_that_insurance_may_be/)
Ok, if lightning network need insurance to work, and traditional clearing solution also works perfect given insurance, then why don't just use existing mature clearing based solutions? I thought the biggest benefit Lightning network has against traditional clearing solution is that it requires no trust, but it seems not the case. If you need insurance to be trustworthy, then there must be some fundamental weakness with the design of lightning network. I have not looked into details about this statement, too low signal to noise ratio there, but it is very natural that LN like any new system have many security problem which only time will tell if it is a robust design
In my not-so-deep understanding of LN, they are using a similar design as NashX exchange's mutually assured destruction model to keep it trustless, however, that model does not work well under certain circumstances. That's also the reason those so called P2P exchanges can not gain any momentum against localbitcoins: You eventually need an authority to solve a complex dispute, blockchain can not be this authority since it lacks judgement
Ok, everyone can go home and sleep, no work needs to be done, bitcoin is perfect, just raise the block size limit to 2MB for the time being
With that kind of attitude you might have just continued to use fiat instead of Bitcoin. But you've managed to comprehend Bitcoin. You can do the same with segwit or LN. It just means you must spend time on that, and refrain from making judgements until you're finished.
Mark Friedenbach: https://www.reddit.com/r/btc/comments/3woin3/to_adam_back_we_are_hereby_officially_requesting/cxzpcpw