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_light... 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?