Lightning Network

[fatalbert]

So this miracle fix.

Question:

Say you open a channel with a friend and you put 1 btc in there. How long are you going to leave that btc locked up in that channel? Fee to open channel and wait 3 days. 1btc locked up. Fee to close channel and wait 3 days for your money/btc.

You own a coffee shop. Your customers open a channel with you and input 1 btc as their balance. How long are you going to extend them iou credit for? 30 days? How do you pay your bills in the meantime? You have $0/btc cashflow cause the channel is all iou’s  So this customer gonna pay fee to open channel, wait 3 days. Make 30 transactions. Close channel pay $$$ and wait 3 days for it to close. Because you need your real btc/payment.

So now they have to pay $$$$, to open channel again, wait 3 days and repeat.

Clap, clap, clap. Awesome fix.

Your being sold a scam (ltn) . This could work for inter-company stuff where they shift around and account for on their books, but they would just use their own coin/network/ripple at that point.

[fatalbert]

Scenario #2.

Lightning network runs the way it is ultimately designed. Huge spider web that connect everyone’s channels. I have channel with my friend, he has 1 with Starbucks. Multiply this to everyone and every store.

Sirens, huge problem. To hop thru other ppl’s chsnnels you have pay a fee, more importantly, their channel and every channel you hop thru has to have that balance of btc or higher.

Huge huge prob.

So private depositories will open up that have huge reserves, open a channel with them, they take care of rest as they have the funds and chsnnels with every store in the whole world.

This my friends is centralization. Give depository, 1btc, they give you back lightning iou’s  Sound familiar? Depository says give use your gold, here’s paper iou’s  

So lightning for sure is a fix. It’s just a full blown centralized digital currency.

[bitart]

I'm not an expert in the Lightning Network, but I'm interested in the answer if the above stated is true or not. My understanding is that the sum fee of passing each LN hub should always be smaller compared to the Bitcoin fees. The balance of the LN hubs should not be a problem because if someone has not enough bitcoin than why would he open a hub? Just to lock the funds? If someone opens a channel it's not for a short time, so there's no need to pay a fee for the closure, because it can be open for a longer time. If the other people use the channel it makes him money so on the long run, it can be profitable.