Quote from: waxwing on January 22, 2017, 01:16:20 AM

Franky is talking utter drivel. Whether LN is going to "work" is debatable, but the usual talking points against it (centralisation?! fees?!) are laughably far from reality.

but lets digress to LN seeing as u think its laughable and not what i said it would be

have you actually seen the penalties and fee's of LN
have you understood how LN multisig works (2 party authorisation) which can lead to hubs setting up to be the second party of everyones contract

have you done the maths, run scenarios,? if you ignore using a hub and instead go for the 'hop' idea of LN... the costs are even bigger and penalty risk is higher

eg
A<->B
B<->C
C<->D
D<->E
imagine A wanted to pay E using the 'hop' concept.
first A move funds to B..
B wont change his funds with C for free so A has to pay a fee to B to thank him for his involvement
next B move funds to C..
C wont change his funds with D for free so A has to pay a fee to C to thank him for his involvement
next C move funds to D..
D wont change his funds with E for free so A has to pay a fee to D to thank him for his involvement

so to pay E is 4x the fee compared to just trading with B
the risks are due to no previous interactions with other hops. all of their locktimes will differ which snowballs into some channels closing earlier than expected.

this is what blockstream are hoping for. so this is where they become X (a hub)

A - X - E
/ | \
B C D

now everyone only has to pay 2x hop fee but everyone can trade with each other.
downside.
now X has 50% authorisation permission status with everyone.
now X has can be the deciding factor of how long they want to make customers funds mature for after settlements confirm (CLTV)
now X has can be the deciding factor of chargbacking their customers funds after settlements confirm (CSV revokes)

yea they may get some competition where starbucks or walmart become a hub. and offer a cheaper fee. but thinking that the 'hop' concept will be used dominantly is not a rational end result.

oh and its worth people really