Quote from: RNC on February 27, 2018, 11:53:22 AM

Quote from: DooMAD on February 27, 2018, 11:22:14 AM

While people have erroneously compared it to "interest on loans" in their attempts to understand all this, that's categorically not what's happening in Lightning. "Loans" and "interest" imply fractional reserve and there's none of that in LN. If that's the impression you were left with, perhaps it's you who needs to take another look at the whitepaper.

fractional reserve banking stopped working years ago with main stream banks and they no longer need money on deposit to print new notes but your argument is like
saying that because a street light is left on at night that it's no night time because you can see in the dark.

Interest + fees = Banks and not only is this centralized in the case of hub-banks going down but it is also off-chain so may I suggest that perhaps you
need to read the white paper again instead of letting them pull the wool over your eyes.

Quote

A Funding Transaction may have multiple outputs with multiple Commitment
Transactions, with the Funding Transaction key and some Commitment
Transactions keys stored offline. It is possible to create an equivalent
of a Checking Account and Savings Account by moving funds between
outputs from a Funding Transaction, with the Savings Account stored
offline and requiring additional signatures from security services.

It stinks of banks, face up to the facts.

Yes, apart from the bits where you're completely in control of your own funds at all times, there's no one to seek permission from before you can transact, there's no interest, there's no overdraft, there are no holidays or weekends where Lightning is closed, there's no junk mail asking you to sign up for a credit card or to tell you about other products and services, there's no "know your customer" crap requiring every company you've ever transacted with storing and likely losing your personal and financially sensitive data to thieves and hackers, there's no AML, there's no money printed from thin, there's no supporting a $1.2 Quadrillion Bankster Derivatives Market, there's no central bank who has to be trusted not to devalue the currency, there's no PPI, there's no LIBOR, there's no hyperinflation, there are no "banker bonuses", there's no "too big to fail", there are no bail-ins or bail-outs.

But yeah, other than all that, it's just like banking. Roll Eyes