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.
this is Segregated Witness and 2017 all over again but this time with Lightning Network. and FYI OP is the same person who has been spreading the same false information about SegWit back in that time too under a different account. the same way they were trying to convince everyone that your funds in a SegWit address can be spent by anybody they are now trying to say funds in an LN channel can be spent multiple times!