Lightning Network and how it works


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LN is an abomination.

1.) To use it in a self-custodial way, the user would need to run a node server and also a lightning node and lock funds up in it. Most users don't even want to run a normal bitcoin node, hence the popularity of spv wallets, which do not require the download of the full blockchain.

2.) LN's incentive structure does not make any sense. the BTC-LN cabal envisions few high fee on-chain transactions, and smaller transactions carried out on LN. As LN fees can't be high, ask yourself how would it make sense? LN is a parasitic non-solution to an artificially created problem. There is little to no incentive in locking up and risking funds on LN.

3.) LN does not work well on a crippled chain, which was proven when LN nodes had to cease operations when the underlying main net got clogged.

4.) it is overcomplicated and still suffers from routing issues which will never be solved

5.) To exit/enter LN it requires a high fee main net tx,

Overall, LN represents everything that Bitcoin was invented to overcome (centralization and friction).

Be aware, that Bitcoin maximalists will explain how things are supposed to work in LN, but if you point out any of the glaring obvious flaws to them in Bitcoin Maxi community (like, you have to already have money in your channel in order to receive money in your channel, for one), expect to be fought and/or banned.

Be very aware of the abuse of terminology. For example, they call LN "trustless" but it's not that, it's reduced trust, but not trustless. These sort of exaggerations and blatant misrepresentations positively abound when discussing LN. I would argue that blatant misrepresentations of fact are the only reason LN exists (read the first few pages of the LN white paper for more examples).