Replying to Avatar Saberhagen The Nameless

As long as you have an active node and channel state backups or trust another person to do it. The potential to be rugged by your peers or channel host is always there after you make a transaction. This caveat doesn't exist for L1. Once the transaction is sufficiently confirmed you can't be rugged. It is final. Maybe there is a different term for it.

Worse, in practice, most lightning users don't even use it this way. They use it custodially.

I'm willing to entertain trade offs. But we're throwing away major value props of Bitcoin for scalability. The few things that differentiate it from fiat.

Defeats the whole purpose.
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Geist 2y ago

Once funds are received by lightning they cant be rugged unless you are using a custodial wallet or your node is disconnected for an extended period, which even then can be mitigated by watchtowers keeping an eye on your peer issuing an old channel state. Different terms for things, yea, I think the way a lot of this is playing out pushes our understanding of how money works to ite limits, I really dont think layer 1 should be considered settlement, it works today for those purposes but everyone using bitcoin today could be using lightning self custodied today as well, as it scales into the future I think l1 will be unusable for anything but moving liquidity and we will call lightning transactions as settlements.

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