IS THE LIGHTNING NETWORK UP AND RUNNING

[Wind_FURY]

Dice sites can take your initial deposit and you can choose your withdrawal at any point, (without time locks).
Until LN has many direct fiat to LN markets where people can bypass the ridiculous time locking , it is of no real value.  .

That, or you aren't understanding the timelock part correctly.  You seem to be of the impression (or possibly just attempting to mislead less experienced users and give them the false impression) that you have to wait for the timelock to end before you can settle to the blockchain.  The idea is that you settle to the blockchain BEFORE the timelock expires.  It's a bad idea to wait for the timelock to run out.

Your Time lock is set for 2 weeks,
so you show me by redeeming your bitcoin IOU in only 1 week and transferring that btc out to another address,

I'll refer you to the Bitcoin Wiki, specifically Poon-Dryja payment channels.  There's a distinction between a payment channel that is closed unilaterally versus a payment channel that is closed with both parties in agreement.  If the Dice site have acknowledged your withdrawal (and it would be bad for any desire they might have for repeat-business if they didn't allow their customers to withdraw) you shouldn't face any issues.  The on-chain timelock is to prevent cheating and for when there is a dispute.

In other words, without both parties agreeing your coins are still time locked and you have to wait.
The dice company is under no obligation to close their channel early and it is extra steps for them to do so for random users at random intervals, so much so , odds are they just ignore it and wait for the time lock to expire on their own.
Funny how onchain bitcoin relies on no one and LN relies on all parties involved to the point ,
they can allow time locks to hold your funds hostage on a whim.

Then the problem is isolated in how the dice site is running its business, not the user's problem with the Lightning Network. Dice sites can also hold on-chain withdrawals if they wanted to.

Explain in full detail how LN is a fractional reserve. I want to learn.

going with YOUR premiss that Msats are simple a measure of real bitcoins.

when people pay for a channel using fiat/altcoin/coinbase balance/unconfirm(unlocked)btc. a service using the eltoo/factory concept creates a channel(HTLC) that contains msats

this means say someone paid using $50 coinbase FIAT balance. they can have opened a channel by a service where the user agree's to accept 1000000000msats(~$50) which they are happy to agree as the value is ~$50. yet although Msats are supposed to be
100000000000msat:1btc.. even though the fact that no btc was locked on btc blockchain, this means there is more pegged btc balance(msats) than actual locked BTC

What? That's paying $50 for an incoming channel capacity of 1 Bitcoin for someone. That means the "channel opening service" is staking 1 Bitcoin in Lightning.

Are you saying that that $50 created 1 BTC worth of "IOU pegged promises to pay tokens"?

[DooMAD]

I'll refer you to the Bitcoin Wiki, specifically Poon-Dryja payment channels.  There's a distinction between a payment channel that is closed unilaterally versus a payment channel that is closed with both parties in agreement.  If the Dice site have acknowledged your withdrawal (and it would be bad for any desire they might have for repeat-business if they didn't allow their customers to withdraw) you shouldn't face any issues.  The on-chain timelock is to prevent cheating and for when there is a dispute.

In other words, without both parties agreeing your coins are still time locked and you have to wait.
The dice company is under no obligation to close their channel early and it is extra steps for them to do so for random users at random intervals, so much so , odds are they just ignore it and wait for the time lock to expire on their own.
Funny how onchain bitcoin relies on no one and LN relies on all parties involved to the point ,
they can allow time locks to hold your funds hostage on a whim.

Or, rather than trying in vain to make it sound worse than it really is, you could just concede and admit you might have actually learned something for once and that spreading FUD doesn't work.

If you had deposited funds on-chain to a dice site and your balance was in credit, they would have 100% control over those funds.  If they don't want to acknowledge your withdrawal for the funds that are rightfully yours, you would get nothing, because there is nothing you can do to make them release the payment to you, other than perhaps involving law enforcement which probably wouldn't work anyway.   You are wholly reliant on them being honest.  The Bitcoin protocol is trustless, but any services you deposit funds to on-chain absolutely rely on a healthy (or possibly unhealthy) dose of trust on your part.

In a payment channel, powered by smart contracts, any funds left in your portion of the channel could be reclaimed even if the Dice site choose to be uncooperative or dishonest.  Having to wait for a timelock is preferable to not getting your funds at all.

Next load of FUD for me to obliterate, plz?  

[franky1]

the "payment channels" doomad refers to are ~3 years out of date

Lightning Network paper, v0.5.9.1 Joseph Poon & Thaddeus Dryja Retrieved 2016-04-10

he refers to an old concept that had flaws where an early version of lightning was described with concepts that used segwit (before segwit was even activated),

Retrieved 2016-04-10

which after testing had flaws and functional problems.
(these were the olden days of 'revoke codes and penalties and such)
(these were the olden days before msats)

this is why latest lightning 'payment channels' dont use the actual CLTV as the active iou(payments), but are now using HTLC as the active IOU payment channels and just use CLTV as the setup/close session ramps in and out.
even these setup/close sesion ramps in and out of LN are being phased out with new concepts of factories. where by individual users never hold a CLTV. instead a factory(main node) manages a CLTV (from a blockchain funded collateral) to then pass out a HTLC to users(lite wallets). or simply hands out  HTLC to users if collateral comes from other sources like coinbase balance