Okay, I'm really worn out. I have no idea how to approach the thread now (after a few replies). Could you ask direct questions? What is it that you do not understand or have trouble understanding; what are your concerns?
I found the exact words from luke-jr on reddit:
Near-instant confirmation for transactions in a trustless manner, much cheaper than the blockchain.
In other words, if some XT shill comes up here, and says that blockstream will profit from this and whatnot put them on the ignore list so that we can have a decent discussion.
Keep in mind that LN also needs a block size increase in order to scale upwards. However, even if we followed Gavin's plan and did 8 GB
right now (I'm disregarding all problems with this statement, and we're going with the assumption that this
is the perfect solution) it would be able to handle ~24 000 tps (3 tps at 1 MB x ~8000). This seems like a nice number doesn't it? It does not if you factor in the size of each block. We're talking about ~1 150 GB of data
per day (~420 400 GB per year).
Obviously this is really inefficient.Now with the Lightning Network on the other hand:
If all Bitcoin transactions were conducted inside a network of micropayment channels, to enable 7 billion people to make two channels per year with unlimited transactions inside the channel, it would require 133 MB blocks (presuming 500 bytes per transaction and 52560 blocks per year).