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10 sats \ 5 replies \ @George203BTC OP 21 Feb 2024 \ parent \ on: Bitcoin has a Scaling Issue bitcoin
Sounds like a fair concern to me.
How would this not be a problem for global payments system today? So, we could imply this is a scaling problem for banks and payment processors, due to reliance on electricity. Maybe we should not be n a hurry to phase out cash (for ultimate scalability)
I've got nothing against covenants, federations or ecash mints. I stiill don't see that lightning is unscaleable. Most use it today without a node or channels of their own.
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It is indeed scalable if you are willing to make that tradeoff and risk (sovereignty vs custodial).
Custodial solutions are vulnerable to KYC, censorship, rugs, fractional reserve, etc.
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Can't argue with that. I'm just concluding that when you stretch any system to it's logical maximum usage, you've got imperfections and vulnerabilities. Because we live in a political, human and mechanized system. They are all subject to error and exploitation.
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No doubt it would be a problem. But channel states and backups are a different thing, and there are costs involved with reopening them, and the force closure of channels incurs fees. And scarce block space.
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But that's what I'm trying to say, it's not relevant if lightning is becoming a different kind of solution whereby most people transact using wallet solutions.
Sure there're trade offs, but as there's only 21/the global population, it's highly unlikely most will be throwing it onto lightning channels of 500,000 sats
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