Post
Topic
Board Development & Technical Discussion
Re: Lightning Network Discussion Thread
by
vapourminer
on 16/07/2018, 20:15:17 UTC
a request from Shelby. to be considered a last contribution, and perhaps further some more useful discussion on the matter (without his now banned input of course).

If someone is willing to link or quote this in the LN discussion thread, I suppose that would stimulate the discussion points over there. I guess my last contribution.

I had clearly explained that Lightning Networks will work fine with Satoshi’s protocol once it centralizes as it must because it is a natural monopoly:

For example the current LN thread discussion is incorrect or incomplete ever since @anunymint was nuked from the thread. They do not understand the concept of a natural monopoly and that the liquidity scale is the barrier-to-entry in LN because users always need to be where the liquidity is as exemplified by exchanges, especially in payment systems because merchants and users don’t want to be stuck and not be able to checkout the shopping cart.

Scale = better service (routing, etc) and higher liquidity

Decentralized exchanges have failed because everyone needs to be where the liquidity is. Much more so for payment systems. When someone can’t route their payment because of insufficient liquidity, both the merchant and the customer lose.

The LN Mt.Gox hubs can then leverage this need into entrenched oligarchies, which can dictate terms to users and merchants. Visa and Mastercard here we come again.

Nothing changes. We are right back where we started from.