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Author Topic: Litecoin segwit activation. What happened?  (Read 6637 times)
coinphilosopher
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February 24, 2017, 05:18:08 PM
 #101

LN, in my opinion, is only a micro-transaction/micropayment solution. It is the same thing like a prepaid card - only that the prepaid card issuer cannot run away with your money. At least not that easy.

So I consider LN an improvement to centralized wallet-to-wallet transactions (e.g. coinbase wallet to other coinbase wallet).

The good thing is that we have plenty of altcoins that can test different scenarios between the extremes "LN for nearly all transactions" and "only on-chain transactions".

Apart from that, Segwit would also facilitate Atomic Cross Chain transfers - no more shady exchanges (Cryptsy!) needed. That would immensely benefit all altcoins out there.

PS: Litecoin adoption seems to have stalled a bit but is pretty good (17-19%) as it's only the second activation period and there is plenty of time still.

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DarkStar1O9
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April 02, 2017, 02:46:07 AM
 #102

Now getting close to 60% and higher Smiley

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April 02, 2017, 04:41:24 AM
 #103

To all BU shills, for the last time, there'll be a balance with LN and litecoin transaction fees there.  Wake up.
If the litecoin fees are too low, it likely won't make sense to keep large LN channels open as that also means there's very little to be gained from routing fees. You do need a secure computer online to route LN payments through your channels, even if keeping the channels open doesn't require an online computer all the time.
When litecoin fees are high, there's a large incentive to optimize your channels and make sure they're open and active (that is routing payments) so that you can profit from offering people cheaper payments than litecoin itself. This means more and more people will pay through LN and transaction pressure on litecoin blocks will drop, causing the fee to drop too.
Between these two, there'll be a point of balance that'll be the actual fee level in litecoin. This is the natural market balance that will form.

The problem with that is that it doesn't allow miners to squeeze all transactions in a small block, and have users fight for the little room there is to be able to move their funds.  Unlimited blocks give you the same problem, but then, unlimited blocks is just a lure to get very limited blocks and no segwit.
We all know, that something with a hard limit on its supply (like the 21 million coins in bitcoin) can give rise to very high prices.  A hard limit on the amount of transactions will lead also to very high prices (fees).  But then, there shouldn't be any other way to transact like off-chain.

To the ideal to rip off users, are:
1) small blocks
2) LN

We then have two types of industrials that get the money the users are paying: miners and LN banks.  LN banks, most probably, will be exchanges, which have big wallets and can keep open a lot of channels to their customers and between them.  They are the natural LN hubs.  Exchanges, under LN, are going to become the new Citybank.  They are already in the process of becoming regularized as a genuine bank.

The small blocks make that there are huge fees for on-chain transactions and settlements of LN channels.  LN makes that nobody complains, until most are locked up in channels to a few banking hubs.  Then, these banking hubs can increase their LN fees almost to the level of the (very high) settlement fees on chain.  You are locked in, in any case, so you better pay, because otherwise you have to pay the settlement fee, if ever your settlement transaction can get through.

Miners can determine the amount of spam needed to squeeze the on-chain blocks and fees to significant heights, and then the users are at the merci of the LN banks.  So, essentially, you open a LN link to your exchange/bank like you open a bank account, you sign a contract and all that, and then you can use it.  The settlement would also most probably happen with a lot of paperwork.  Like with a normal bank.

Miners are keeping off LN for the moment, because they don't see why they should share the lucrative squeezing of the fee market with newcomers in the field, that *don't need so much investment in ASICS*.  Miners are put on the losing side of control, because LN banks can swiftly become banks, or leave the space by simply selling off their stash.  Miners are invested longer term in the coin with their hardware.  They don't know how the distribution key of the money they suck off users will be distributed between them and the LN banks/exchanges.

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