Post
Topic
Board Bitcoin Discussion
Re: [self-moderated] Is LN Bitcoin? franky1: About scaling, on-chain and off-chain
by
franky1
on 21/12/2022, 16:22:57 UTC
Quote
if it uses a different unit
EG a token of 11 decimals. its not bitcoin
I have a broker account that uses fractions of cents internally. Does that mean it's not in euro? Or maybe it's not euros because it's not printed on paper banknotes, but only numbers on a centralized computer. I think most people consider it to be euros, because for all practical purposes it acts the same, even though it isn't printed on "original" banknotes.

the function of your micro eurocent has a different purpose to a metal eurocents you find in your jacket pocket

if that database of microeurocents has:
*some guarantee that your broker cant just do an FTX on your balance..
*recognised by your countries regulators that your deposits are insured
*no way for broker to get away with stealing your microeuro
*where all microeuros convert to euros no matter what situation occures

then YOU may presume the microeuro to be a euro.. (emphasis on YOU)

however much like:
#not-your-key-not-your-coin(counterparty refuse to sign multisig)
much like fractional reserving(thor turboing)(change 1:1000 peg)

there are more flaws to your brokers system than an actual euro

LN msats have many many ways to break the peg. and also many ways your channel counter-part can attack your value and abuse the "trust" of the contract you have agreed on via funding tx signing it into their co-control
if you are not away or wish to be blind to the differences.. thats on YOU