The Bitcoin Lightning Network: Why it Will Work, and Dispelling Common Misconceptions

This article is kept short and sweet but still packed with information. If you or anyone else you know finds it helpful, please consider sharing it or saving it for later.

1) The first thing to understand, is that the Lightning Network is not here to replace ordinary transactions.

Once you realize that, the Lightning Network starts to make a lot more sense.
Much like batching transactions and other soft-forks, the Lightning Network is here to reduce large amounts of noise. Here's an example where the Lightning Network can be used:

• I'm already connected to Network A

• Bob is on Network C

• Network A indirectly connects to C in some way

• I can send Bob BTC instantly over the LN

Here's an example where the LN cannot be used:

• Bob has no BTC in his wallet, he's a new user

• Bob buys BTC on coinbase

• Bob tries to send himself BTC from coinbase over LN

This won't work because Bob needs some Bitcoin to connect to the network in the first place.

2) It's not Centralized just because people use the most convenient node

I see graphs on /r/Btc explaining how it's an unsolved np complete problem. They draw out all these pretty graphs with everything connected to one giant hub
Even if a node refuses your payment, you can simply go around it. Even if a node passes 90% of the transactions, their disappearance won't change a thing.

Knowing the limitations of what a node can actually do, you quickly realize that the network would never actually rely on one node. If a single point becomes so valuable, more people will just hop on board.

3) The Lightning Network isn't this complex thing, where you have to worry about a million things

Bitcoin used to be this really complex thing. No one understood how it worked, and you had to be a genius to send it around.
All of this is hidden under the beautiful magic of a simple GUI. Wallets are starting to pop up and even our old buddy Electrum is creating support for using the LN.

If you don't think Lightning Network will take off because it's complicated, don't worry. It just means you won't be an early adopter of the technology.

4) Closing a node to scam someone really just doesn't work

You really, really need to mess up for this to happen
Here's a far-fetched example where closing a node to scam someone works:

• Bob wants to pay Charlie

• Bob tells Charlie he's going to create a Lightning Network node to transact

• Bob and Charlie both pay a transaction fee and wait 10 minutes to connect to Bob's Lightning Network

• Bob sends the money to Charlie, but tells Charlie to stay on the Node

• Bob closes the Node when Charlie goes offline.

Since no one else is connected to the node to protest, he's able to close it at an "earlier date" than when he paid Charlie to close the node on effectively reversing the transaction.

Cases where it doesn't work

1. Charlie tells bob to fuck off and just pay him through a normal transaction

2. Charlie leaves the Lightning Network after receiving the payment

3. Bob's Lightning Network grows and becomes too large to close at a dishonest time

It's also worth noting, you can only possibly get scammed if you're transacting with the owner of the network.

---

Tl;dr The Lightning Network is very much in beta, but there aren't actually any groundbreaking flaws with it. With the emergence of wallets and support, LN will grow to be the predominant scaling solution to almost every blockchain coin.

If you like this post, consider checking out some of my other informative threads by clicking here.