⭐ Merited by paxmao (2)
I like to know more about things that are necessary to be known before I ever use them, and so, whenever I hear from anyone saying "USE LN", a question strikes my mind every time that where there are some advantages beneficial to the community, there would be flaws as well in this network (as IMHO, nothing comes flawless and so doesn't LN). I wish to discuss more about such flaws (ever recognized) and their intensity levels as to what extent they may harm the decentralized part of this invention.
As franky1 explained me in a different thread (post quoted below):
to get into LN you need to do a ONCHAIN transaction to an address that locks the funds. (bank deposit analogy)
so yes you need the blockchaiin..
and when you want to close a channel you broadcast the LN transaction back to the blockchain (bank withdrawal analogy)
anyway within LN its still risky to use and even the Devs have repeatedly warned people.
there are many way to steal coins on LN. and im not talking about bugs. im talking about using LN.
but you will find the more the bankers pay devs to develop LN and complete the roadmap of banking2.0 the more the devs will play with bitcoins network and ruin it so that people lock funds into LN and never use bitcoins network again..
fortknox/fed reserve 19th century all over again
'gold is slow and old, put it into this system and we will give you these signed things called a promissory note that you can trade instantly with"
the grabbing funds trick i quoted is why LN devs are concepting the factories. (to stop people exiting so easily)
and why they are in such a rush to get it live and running
so that to open a channel you dont pay your channel, you pay a fed res(factory) that then funds a bank(hub) and the bank(hub) opens an account(channel) with you and funds you with value. whereby your withdrawal address is not a normal address you own but a public key to the fed(factory) so that you can close an account(channel) and reopen another account(channel) without broadcasting to the network.
thus your bitcoin is always locked in the fed reserve(factory) forever under their control. while you play around with unconfirmed payments with no exit apart from cheaper altcoins. so that they get to keep the btc.
what you got to realise is that LN is NOT bitcoin.
LN is its own banking network. and will be used by many coins. the corporate plan is to lock bitcoins in, and make it appealing for people to prefer to swap BTC for fiat or an altcoin like litecoin if they truly want to get out of the LN system..
why do you think banks grabbed gold.. gave signed promissory notes and if you didnt want to use them, they would give you nickel and copper coins ..
It's worst flaw is that the complete output of all the input will remain centralized as those who are average people and don't really have such high technical knowledge, either need to pay higher fee or be forced to use centralized hubs which, IMO, completely expels the idea Bitcoin and the whole crypto is made for. Is there anything we can do to use this network but not by bypassing decentralization?
Also make me aware of some more flaws you're aware of LN.
As franky1 explained me in a different thread (post quoted below):
what about LN technology itself? Does it consist of anything that could be attacked the way blockchain has blocks? I'm not very clear about this LN, but to what I know, LN doesn't need any such blockchain to conduct the come-&-go of Bitcoins as it works through channels where one can send/receive Bitcoins without having to take too much load of downloading blockchain, adding details again and again, maybe?! 
Can you please elaborate?
Can you please elaborate?
to get into LN you need to do a ONCHAIN transaction to an address that locks the funds. (bank deposit analogy)
so yes you need the blockchaiin..
and when you want to close a channel you broadcast the LN transaction back to the blockchain (bank withdrawal analogy)
anyway within LN its still risky to use and even the Devs have repeatedly warned people.
there are many way to steal coins on LN. and im not talking about bugs. im talking about using LN.
even if we totally forget about bugs, changing opcodes. .. and just think about the auto accept/autopilot of routing funds...
you can get played
me1 [0.15 <:> 0.15] you [0.15 <:> 0.15]me2
me1 can you send me2 payment of 0.15
me1 [0.00 <:> 0.30] you [0.00 <:> 0.30] me2
me2 i close channel thank you for the free* 0.3 *ill explain this below
me2: "random announcement: if 2 people connect to arde and send 0.15each to me1. they can later HYIP arde into turning each of your 0.15 into 0.3
me1 [0.00 <:> 0.30] you [0.15 <:> 0.15] HYIP1
[0.15 <:> 0.15] HYIP2
HYIP1 can you send me1 payment of 0.15
HYIP1 can you send me1 payment of 0.15
me1 [0.30 <:> 0.00] you [0.30 <:> 0.00] HYIP1
[0.30 <:> 0.00] HYIP2
me1 closes channel... yep thank you for the free coin...
me1 started with deposit 0.15.. ended with withdrawal 0.3
me2 started with deposit 0.15.. ended with withdrawal 0.3
total gain 0.3
you can get played
me1 [0.15 <:> 0.15] you [0.15 <:> 0.15]me2
me1 can you send me2 payment of 0.15
me1 [0.00 <:> 0.30] you [0.00 <:> 0.30] me2
me2 i close channel thank you for the free* 0.3 *ill explain this below
me2: "random announcement: if 2 people connect to arde and send 0.15each to me1. they can later HYIP arde into turning each of your 0.15 into 0.3
me1 [0.00 <:> 0.30] you [0.15 <:> 0.15] HYIP1
[0.15 <:> 0.15] HYIP2
HYIP1 can you send me1 payment of 0.15
HYIP1 can you send me1 payment of 0.15
me1 [0.30 <:> 0.00] you [0.30 <:> 0.00] HYIP1
[0.30 <:> 0.00] HYIP2
me1 closes channel... yep thank you for the free coin...
me1 started with deposit 0.15.. ended with withdrawal 0.3
me2 started with deposit 0.15.. ended with withdrawal 0.3
total gain 0.3
but you will find the more the bankers pay devs to develop LN and complete the roadmap of banking2.0 the more the devs will play with bitcoins network and ruin it so that people lock funds into LN and never use bitcoins network again..
fortknox/fed reserve 19th century all over again
'gold is slow and old, put it into this system and we will give you these signed things called a promissory note that you can trade instantly with"
the grabbing funds trick i quoted is why LN devs are concepting the factories. (to stop people exiting so easily)
and why they are in such a rush to get it live and running
so that to open a channel you dont pay your channel, you pay a fed res(factory) that then funds a bank(hub) and the bank(hub) opens an account(channel) with you and funds you with value. whereby your withdrawal address is not a normal address you own but a public key to the fed(factory) so that you can close an account(channel) and reopen another account(channel) without broadcasting to the network.
thus your bitcoin is always locked in the fed reserve(factory) forever under their control. while you play around with unconfirmed payments with no exit apart from cheaper altcoins. so that they get to keep the btc.
what you got to realise is that LN is NOT bitcoin.
LN is its own banking network. and will be used by many coins. the corporate plan is to lock bitcoins in, and make it appealing for people to prefer to swap BTC for fiat or an altcoin like litecoin if they truly want to get out of the LN system..
why do you think banks grabbed gold.. gave signed promissory notes and if you didnt want to use them, they would give you nickel and copper coins ..
It's worst flaw is that the complete output of all the input will remain centralized as those who are average people and don't really have such high technical knowledge, either need to pay higher fee or be forced to use centralized hubs which, IMO, completely expels the idea Bitcoin and the whole crypto is made for. Is there anything we can do to use this network but not by bypassing decentralization?
Also make me aware of some more flaws you're aware of LN.