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Will Bitcoin's Lightning Network kill altcoins like XRP (article)?


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A quote from the article below: "Long term, it seems clear the Lightning Network or something like it will remove the need for cheaper altcoins, but it’s unclear how long it will take for this development to come to fruition. As mentioned above, altcoins with low on-chain transactions may have some utility over the short term, perhaps even in assisting the proliferation of the Lightning Network on Bitcoin."

Will Bitcoin's Lightning Network Kill Off Altcoins Focused On Cheap Transactions:
https://www.forbes.com/sites/ktorpey/2017/12/28/will-bitcoins-lightning-network-kill-off-altcoins-focused-on-cheap-transactions/#

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LN has several complexity behind it that I think were complete oversights when development started years ago.  The movement of Crypto from grassroots techies to mom & pop investors and users is going to require application layers to simplify the requirement of nodes and software.  They're literally going to end up with centralized hubs managed by large companies that pool the average users through 3rd party software.  It'll be no different than today's online banking solutions IMHO.

I get decentralization is a great thing and all...but the true power of the public blockchain is the immutability of the data and the accountability of each and every transaction.  I can see blockchain being leveraged in governments, their budgets, their tax systems, and anything that targets fairness and accountability.

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29 minutes ago, corak said:

LN ties up BTC supply, which as usual is great for HODLers and miners of BTC and bad for everyone else.

In LN a user of the network will need to have effectively pre-funded payment channels with everyone they might interact with, which is a serious pain in the ***. When I go pay online for something with a MasterCard, I don't have to prefund anything or pay extra fees only because I've never done business with that particular merchant before. 

So what people will end up doing, is to use LN like they use the banking system now. 

BlockStream has all your Bitcoins, you get an account balance from BlockStream, you can pay everyone real fast over their network, the BTC network itself doesn't do anything under this system other than to exist. It has absolutely no remaining function. Everyone's just trading and using BTC IOUs, which begs the question why BTC itself has any value, and moreover why should we spend any energy mining it. It's all very bizarre to me. The fast-settling altcoins can do away with that, and execute payments on-chain almost as fast without need of prefunding, or relying on a gigantic hub controlled by a single entity (which is really more centralized than the banking system it purports to replace).

Nice analysis.. and the general public will figure that out as time goes by. Indirectly it's all good advertisement for the coin and chain that figured it all out a long time ago #xrp

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