Building LN on the 1MB base layer is like building a pyramid upside down, it’s unstable and creates more problems than it was meant to solve.


Building LN on the 1MB base layer is like building a pyramid upside down, it’s unstable and creates more problems than it was meant to solve.

Lightning was supposed to make tx fees low right? Well it technically has, but it also introduced the following problems that Bitcoin never had:

LN requires that both sender and receiver be online at the same time to transact. This never existed on Bitcoin.

If you're an LN merchant accepting payments, you must periodically topoff your side of the channel…just so you can keep accepting money. This problem never existed on Bitcoin. I can have an empty address on Bitcoin and receive any amount of money without any limits.

In Lightning when making a transactions you must always reserve the current Bitcoin onchain miner fee, so that if either channel party wants to close the channel it'll get accepted and mined by a Bitcoin miner. Well when Bitcoin fees hit $3 a few months ago, 60% of the Lightning network capacity was locked up in miner fees lol… defeating the purpose of microtransactions and the LN network

In Bitcoin my coins can only be stolen if I leak my private key. Well for LN your money can be stolen simply by not being online to monitor your money. In addition to stealing your LN private keys, a bad user can attempt to steal your funds when you're offline. Which is why LN requires a 3rd party service called Watchtowers to watch over your funds. Way more complicated than Bitcoin

The unsolvable routing problem. A good chunk of LN transactions will fail simply because the routing is weighted and chanes constantly. Compare that to Bitcoin's gossip network which doesn't require any weighted routing. FYI weighted routing is currently a mathematically unsolved problem.

LN is centralizing around LNbig.com At one point LNBig.com had over 70% of the entire LN network capacity. LN will continue to centralize around these big hubs, because they can offer cheap connections and low fees than a regular peer can. Welcome to Bank of America LN Hub TM.

With Bitcoin I can keep my money in a cold wallet. With LN it's either a hot wallet or cold wallet and I must close all my channels and pay the Bitcoin onchain fee just to close it. You're literally choosing betwen low fees OR security with Lightning, where as with Bitcoin you have both.

Both creators of Lightning Drya and Poon have publically stated LN was never meant to be a scaling solution for Bitcoin and show many problems that will simply never be solved. Like the race condition when a big hub closes and hundreds of users all attempt to race to transmit their transaction to miners.

In the Lightning whitepaper, LN requires AT LEAST 133MB+ blocks for global adoption for LN to work without congestion… And Blockstream blocked a minor 2MB increase. So good luck.

So congrats to Lightning, for "solving" 1 problem and creating 12 new ones.

There's many more, but these are the ones easily digestable by users without going into the deeper technical problems with LN. There's a reason Lightning is always 18 months away from completion….for 5.5 years now. While Bitcoin Cash just works.

Source: https://www.reddit.com/r/btc/comments/dlfy8w/history_reminder/f4qpdlc/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

Still getting daily free Bitcoins from Cointiply
Submitted by MemoryDealers
via reddit https://ift.tt/2NVbh3H

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Create a website or blog at WordPress.com

Up ↑

Create your website at WordPress.com
Get started
%d bloggers like this: