Great, fractional reserve is fraud. I agree there. But I think it's an insult to those securing the network to assume that they would be so ignorant as to allow such a horrid change in Bitcoin. It's nothing like a Bank that can alter its terms and conditions at any time without prior warning or consent and no one can say or do anything about it. The rules are defined in the code and the code can't be changed unless there's a sufficient majority who accept the change.
I'm not entirely sure what you're suggesting with "the LN Hubs will update because they will profit from the fraud". But if you mean there was such a thing as a hub running their own code to magically create new coins from nowhere, that software would be different to what everyone else was running. Those transactions wouldn't be compatible and wouldn't be accepted into the blockchain.
There are some legitimate concerns about Lightning, but fractional reserve isn't one of them and time will solve many of the others.
I'm not entirely sure what you're suggesting with "the LN Hubs will update because they will profit from the fraud". But if you mean there was such a thing as a hub running their own code to magically create new coins from nowhere, that software would be different to what everyone else was running. Those transactions wouldn't be compatible and wouldn't be accepted into the blockchain.
There are some legitimate concerns about Lightning, but fractional reserve isn't one of them and time will solve many of the others.
BTC miners & BTC nodes secure the BTC ONCHAIN Network.
LN Hubs will Secure the LN Notes, BTC miners have no power to determine how LN handles it's OFFCHAIN Note system.
Your link above, the guy that wrote it is an idiot, he says and I quote
Quote
Lightning Network transactions are bitcoin transactions.
It is incredibly important to remember this and repeat it to yourself over and over again.
The Lightning Network never holds custody of anyones funds.
It is incredibly important to remember this and repeat it to yourself over and over again.
The Lightning Network never holds custody of anyones funds.
Just a few lines down on the same page , he contradicts his earlier statement.
Quote
The Lightning Network has problems with exchanging significant amounts of value.
For the Lightning Network to function, it requires that users and businesses lock up as much bitcoin as they would ever expect to transact over a given period of time.
For the Lightning Network to function, it requires that users and businesses lock up as much bitcoin as they would ever expect to transact over a given period of time.
See when people lie , like he did , when they keep talking , the contradictions appear.
LN=Goldsmiths/Banks
History unlike humans does not lie.
