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The Lightning Network doesn't solve the congestion problem for global adoption. To open a lightning channel you need an on-chain transaction. The same is true t

by foepys 6y ago

The Lightning Network doesn't solve the congestion problem for global adoption. To open a lightning channel you need an on-chain transaction. The same is true to close one. Assuming 2,500 transactions per block, you will need ~970 days to just open a lightning channel for each US citizen (assuming 350 million citizens and no other Bitcoin transactions). Due to his limitation the Lightning Network is unsuited for any large scale use outside of exchanges.

gruez 6y ago
>Assuming 2,500 transactions per block, you will need ~970 days to just open a lightning channel for each US citizen (assuming 350 million citizens and no other Bitcoin transactions). >Due to his limitation the Lightning Network is unsuited for any large scale use outside of exchanges. But do we need to onboard everyone everyone in a year? It's like saying the internet will never scale because modem manufacturers can't keep up.
- mandelbrotwurst 6y ago
  I'm mostly guessing at this because I'm not very familiar with Lightning Network, but I think they'd need to be closed out periodically as well in order to settle up? Plus, I think you'd ideally want an account with each vendor that you deal with, not just one account, otherwise I think the channel would probably need to be managed by some central authority who manages the accounting between you and whoever you're keeping these side accounts with, which seems not great for a number of reasons....and then on top of that there's that 350 million is just one country, let alone the entire planet.
  - gruez 6y ago
    >I'm mostly guessing at this because I'm not very familiar with Lightning Network, but I think they'd need to be closed out periodically as well in order to settle up? AFAIK they can be kept open indefinitely. >Plus, I think you'd ideally want an account with each vendor that you deal with, not just one account, otherwise I think the channel would probably need to be managed by some central authority who manages the accounting between you and whoever you're keeping these side accounts with The whole point of lightning is that you can use the network to route money between nodes, so you could make payments even if you don't have a channel open with the person you want to make payments with. It's not unlike how international wires work. If you bank with a local credit union in country A and you want to wire money to another local credit union in country B, the wire might bounce between multiple "correspondent banks" eg. credit union A -> big bank A -> big bank B -> credit union B.
Acrobatic_Road 6y ago
https://blockonomi.com/channel-factories-bitcoin-lightning-network/ https://blockonomi.com/channel-factories-bitcoin-lightning-n...
- foepys 6y ago
  Now they reinvented credit cards. Cryptocurrencies are really speedrunning financial history.

by foepys 6y ago

gruez 6y ago

>Assuming 2,500 transactions per block, you will need ~970 days to just open a lightning channel for each US citizen (assuming 350 million citizens and no other Bitcoin transactions). >Due to his limitation the Lightning Network is unsuited for any large scale use outside of exchanges. But do we need to onboard everyone everyone in a year? It's like saying the internet will never scale because modem manufacturers can't keep up.

mandelbrotwurst 6y ago
I'm mostly guessing at this because I'm not very familiar with Lightning Network, but I think they'd need to be closed out periodically as well in order to settle up? Plus, I think you'd ideally want an account with each vendor that you deal with, not just one account, otherwise I think the channel would probably need to be managed by some central authority who manages the accounting between you and whoever you're keeping these side accounts with, which seems not great for a number of reasons....and then on top of that there's that 350 million is just one country, let alone the entire planet.
- gruez 6y ago
  >I'm mostly guessing at this because I'm not very familiar with Lightning Network, but I think they'd need to be closed out periodically as well in order to settle up? AFAIK they can be kept open indefinitely. >Plus, I think you'd ideally want an account with each vendor that you deal with, not just one account, otherwise I think the channel would probably need to be managed by some central authority who manages the accounting between you and whoever you're keeping these side accounts with The whole point of lightning is that you can use the network to route money between nodes, so you could make payments even if you don't have a channel open with the person you want to make payments with. It's not unlike how international wires work. If you bank with a local credit union in country A and you want to wire money to another local credit union in country B, the wire might bounce between multiple "correspondent banks" eg. credit union A -> big bank A -> big bank B -> credit union B.

Acrobatic_Road 6y ago

https://blockonomi.com/channel-factories-bitcoin-lightning-network/ https://blockonomi.com/channel-factories-bitcoin-lightning-n...

foepys 6y ago
Now they reinvented credit cards. Cryptocurrencies are really speedrunning financial history.