On Sun, 7 Jan 2018 19:27:55 -0800 Steven Schear <schear.steve@gmail.com> wrote:
Yes, it's a rather open secret that LN channel abuse,
abuse, exactly how? I'm not seeing any open secret. LN works like I described it.
esp. using Hub architecture, can do FR just link banks.
No it can't.
https://www.reddit.com/r/Bitcoin/comments/56ehi1/fractional_reserve_on_light...
from your own link Q: "could this lead to a form of fractional reserve bitcoin?" A: "It's not possible with Lightning. For each satoshi on the Lightning network, at least one satoshi on the Bitcoin network is tied up and unspendable. "
By never closing channels it difficult to detect what's going on.
It doesn't matter if you close the channel or not. What matters is that in order to open it you need actual bitcoins.
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?