Author: Mark Friedenbach 2015-08-09 18:54:05
Published on: 2015-08-09T18:54:05+00:00
Tom Harding, a member of the bitcoin-dev mailing list, appears to be misunderstanding how lightning network and micropayment hub-and-spoke models work. He argues that Bob cannot receive money unless a payment hub has advanced it to the channel or if funds have been previously spent. However, the funds are actually advanced by the hub on the creation of the channel, with no credit involved. If the funds aren't already available for Bob to claim his balance, then the payment doesn't go through in the first place. Harding expresses concern over the third-party dependency that comes with using a payment hub, as it is absent in plain old bitcoin and will come with a fee. He also argues that it is worse than the current banking system, as a bank may not even open an account for someone like Bob who wants to use a Poon-Dryja channel. Furthermore, if Bob has previously spent from the channel, decreasing his claim on its funds, that claim can be re-increased without needing credit. This creates an incentive for centralization as Bob consolidates spending and income in the same payment channel. In conclusion, Harding believes that the Lightning Network requires a powerful middleman to send and receive money effectively, which he finds uninteresting.
Updated on: 2023-06-10T19:03:56.688765+00:00