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lighting network is perfect for micropayments

• paulmd 6y ago
  lightning is really only cheap if you use a single centralized node as a payment provider, in which case you lose the benefits of decentralization. Otherwise you have to frequently open new channels as they become depleted of funds, which becomes quite expensive. and if you just leave one big channel with lots of money in it, then you end up with this fun situation! Hope you don't have a power outage... ever. https://coinspice.io/news/bitcoiners-warn-after-user-documents-losing-32000-in-btc-lightning-network-is-high-risk/ https://coinspice.io/news/bitcoiners-warn-after-user-documen...
  • dpc_pw 6y ago
    You can replenish channels, even multiple all at once, either through someone just paying you, or an on-chain payment through a "loop". And trading some decentralization for "performance" when dealing with small frequent payments is still better than other choices.
  • knocte 6y ago
    Even if you use a centralized node, this kind of centralization in LN is not as bad as the typical "centralization problem" often referred to in cryptocurrency, because it doesn't mean counterparty risk. The worst thing that could happen is that you have to wait some time to get your money back. BTW a follow-up to the story you link is this one: https://cointelegraph.com/news/guy-who-lost-4-bitcoin-has-recovered-most-funds-a-month-later https://cointelegraph.com/news/guy-who-lost-4-bitcoin-has-re...