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.
. 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!