Also, it's been shown, by the Tether USD caper, that most cryptocoin users could care less if there is no proven backing for the fiat they use at exchanges.
On Jan 7, 2018 7:27 PM, "Steven Schear" <[email protected]> wrote: > Yes, it's a rather open secret that LN channel abuse, esp. using Hub > architecture, can do FR just link banks. > > https://www.reddit.com/r/Bitcoin/comments/56ehi1/fractional_reserve_on_ > lightning_network/ > > By never closing channels it difficult to detect what's going on. > > On Jan 7, 2018 6:41 PM, "juan" <[email protected]> wrote: > >> On Sun, 7 Jan 2018 18:32:19 -0800 >> Steven Schear <[email protected]> wrote: >> >> > The way payment channels can be reasonably used enables fractional >> > reserve abuses. >> >> >> Are you sure? As far as I know, one of the main selling points >> of the LN is that it uses...bitcoins. So it's impossible to >> open a channel/make a payment except by starting with an on >> chain transaction. In other words, LN transactions are backed >> 1:1 with real bitcoins. >> >> >> >> > >> > On Jan 7, 2018 6:24 PM, "juan" <[email protected]> wrote: >> > >> > > On Sun, 7 Jan 2018 17:38:02 -0800 >> > > Steven Schear <[email protected]> wrote: >> > > >> > > > Off-chain, once solid tech that isn't a >> > > > backdoor for CBs and WS (as LN appears to be), should easily >> > > > compete with VISA. >> > > >> > > >> > > how is lightning network a backdoor for central banks? >> > > >> > > >> > > >> >>
