Also, it's been shown, by the Tether USD caper, that most cryptocoin users could care less if there is no proven backing for the fiat they use at exchanges. On Jan 7, 2018 7:27 PM, "Steven Schear" <schear.steve@gmail.com> wrote:
Yes, it's a rather open secret that LN channel abuse, esp. using Hub architecture, can do FR just link banks.
https://www.reddit.com/r/Bitcoin/comments/56ehi1/fractional_reserve_on_ lightning_network/
By never closing channels it difficult to detect what's going on.
On Jan 7, 2018 6:41 PM, "juan" <juan.g71@gmail.com> wrote:
On Sun, 7 Jan 2018 18:32:19 -0800 Steven Schear <schear.steve@gmail.com> wrote:
The way payment channels can be reasonably used enables fractional reserve abuses.
Are you sure? As far as I know, one of the main selling points of the LN is that it uses...bitcoins. So it's impossible to open a channel/make a payment except by starting with an on chain transaction. In other words, LN transactions are backed 1:1 with real bitcoins.
On Jan 7, 2018 6:24 PM, "juan" <juan.g71@gmail.com> wrote:
On Sun, 7 Jan 2018 17:38:02 -0800 Steven Schear <schear.steve@gmail.com> wrote:
Off-chain, once solid tech that isn't a backdoor for CBs and WS (as LN appears to be), should easily compete with VISA.
how is lightning network a backdoor for central banks?