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" <juan....@gmail.com> wrote: > On Sun, 7 Jan 2018 18:32:19 -0800 > Steven Schear <schear.st...@gmail.com> 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" <juan....@gmail.com> wrote: > > > > > On Sun, 7 Jan 2018 17:38:02 -0800 > > > Steven Schear <schear.st...@gmail.com> 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? > > > > > > > > > > >