What do you mean by "transaction for settlement", when the final state of the channel is broadcasted on-chain, it does not make them a Bitcoin transaction?
no
until its CONFIRMED its meaningless
its the whole point of blockchains..
anyone can write a tx and sign it. but unless its confirmed on a blockchain. you have not been paid
But it was already confirmed on-chain when the Bitcoins were sent to a 2-for-2 multisig address to open a channel. Are those on-chain confirmations meaningless?
There are no IOUs in Lightning.
on the bitcoin network.
COINS ARE LOCKED
i can lock coins as much as i like.
this does not mean i am then forced to open a LN channel and play with LN
this does not mean the coins disapear from bitcoin and are now in some channel waiting for me.
it just means bitcoins are LOCKED and unspendable. on the bitcoin blockchain and only on the bitcoin blockchain. (much the same as the 100confirm maturity that coin rewards of fresh minted blocks go through.. they cant be spent for 100 confirms)
the purpose of this is that while locked. the counter party can trust that X coins are not going anywhere. emphasis not going anywhere
emphasis again NOT GOING ANYWHERE...
so while they aint going anywhere. it makes things easier to discuss privately where they should go at some future date.
so on paper, in voice chat, in code or using sign language 2 people can discuss their spending habits and make a IOU/bartab of who owes who what of that unspendable amount. so thy use nakpins oo text chat. or....... pegged tokens store locally in nodes or on servr mysql databases
LN is simply a coded version of a IOU system
PLEASE GO LEARN!!!
even basic common sense, general knowledge, logic
if you honestly think that bitcoins jump out of the bitcoin network, and jump into anothr network.
and then when in a locked channel of 2 counterparts. them (''bitcoins'') then jump channel to channel
then you have some hard lessons to learn
Everything you ever said doesn't meet the debate that there are "IOU pegged promises to pay" in the Lightning Network. What material did you read that made you believe that there were?
Plus read this blog, https://medium.com/@bitrefill/2d6ffbad3906
That answers your Bitrefill "LN Fractional Reserve".
Plus newbies, listen to franky1, and believe everything he posts as the absolute truth, then do your own research. That's the best way to learn.
