Lightning Network
Disadvantages:
Requires 2 time locked Onchain Transaction per Party , meaning a single LN offchain transaction requires 4 onchain transactions
With some adjustments this can be called an Advantage: "a thousand LN offchain transactions still only require 4 onchain transactions".
Lightning Network
Disadvantages:
Fractional Reserve & Counterfeiting possible until Withdrawal ONCHAIN confirms ownership
Can you explain how this is a possibility in Lightning? Because I have seen this being lobbed around as an attack on Lightning without any explanations, or examples of how technically it could happen.
I was going to ask the same thing. As far as I know, it's not possible, as each LN transaction requires signatures.
However, without knowing the details of how LN works,
I'm now wondering if it would be possible for a LN-hub to use the same funds to sign different transactions with different users, more commonly known as double spending. Kinda like how I can sign different transactions from a legacy address, and as long as I don't broadcast them for on-chain confirmation, they can all be valid. I sure hope this isn't possible.
That would be a massive failure on the Lightning Network. What would be the use for the project to contnue if it was technically proven to be true, and possible?