1. "LN allows private agreements".. has the word agreements in it. .. its not trustless. it requires both parties to be amicable. even the punishment cant be auto-trusted to work in un-amicable scenarios, it has flaws.
This has become tiring... I've repeatedly mentioned that it's a game theory. You read and write only what's in your interest. Yeah, Lightning payments are just IOUs and LN is designed to destroy Bitcoin. Keep thinking that way, I give up.
You transfer signed transactions that are normally accepted by the bitcoin network and, alongside, partake in a game theory where you're discouraged to broadcast any other than the latest transaction that is made.
If you ever wondered how often someone is penalized for fraudulent behaviour,
forkmonitor keeps track of all penalty transactions ever broadcast. Apparently, there have been 419 unsuccessful cheat attempts with a total of ~5.13 BTC at stake since the end of 2017.
It's a game theory. Another game theory is that we'll constantly have honest miners which will work on extending the chain, punishing those who attack it with their computational cost and rewarding themselves. Does that mean it can always work? Of course not. We've seen lots of 51% in other chains. However, it remains a game theory which works most of the times.
I have been ripped off more times in real life than stolen from my partner in the lightning network. And I've only been ripped off once.
Now if you disagree there's no trust during the Lightning transactions, then everything you've said it's true. Including the analogy with the bank notes. However, I do agree it's trustless.
Back in the day I was rolling my own payment processing and it was extremely simple, efficient, and safe - pre-generate a bunch of cold addresses and hand them out to buyers.
Why did you do that? Why can't you just have a BTCPay Server installed and let it undertake your invoices automatically?
None of this is feasible with LN
Let me correct you; it's a far more efficient way to transact than to update a ledger written in hundreds of thousands of hard drives.