10 sats \ 0 replies \ @brugeman 13 Dec 2022 \ on: Bitcoin Layer 1 decentralization vs LN Protocol centralization bitcoin
It will kill BTC if it ever gets mass adoption...
How exactly could L2 kill L1? It's only the other way around. L2 would help tremendously with L1 adoption though.
The liquidity providers would be Visa, Mastercard and so on.. They only have to settle between them self and then they could get rid of the blockchain and miners as well... Just a new centralized fiat money then...
Don't connect to their nodes then, connect to mine. If somebody supposedly doesn't need a blockchain it doesn't mean you have to use that thing or that blockchain dies.
Also fees via LN doesn't go to miners and fees are the only real income for miners once block rewards becomes too low...
L2 must eventually settle to L1, which is when a part of L2 fees gets to L1. And since it's all properly designed and fee levels are market-driven, the precise proportions will fit properly for any future circumstance, even 100 years from now when fees are the only L1 income.
The liquidity channels would be operated by the big banks/exchanges... No real reason to keep a blockchain then even...
Big banks DO NEED a blockchain precisely because otherwise they end up with SWIFT and all it's mess.
1TB per day about in Blocks at 65k tx per second. I think miners making $390k per block can afford to add 1TB per day to their storage cluster
This whole big block nonsense ended long ago. I wonder how sw engineers could even argue for that if it's an obvious dead-end. The only way to scale is to avoid broadcasting everything to everyone, which is precisely what LN is doing.
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