In the long term, nearly every function of the internet will be ported to some layer of the Bitcoin network. The shift to cloud native applications makes it inevitable.
Theoretically, LN can execute millions of tx per seconds.
But there are two major problems with LN:
- you already need to be on the LN to use it, and you can't use it if you don't already own some BTC. You can't receive coins if you don't put some coins to open the channel. But to open the channel you need to do an onchain TX, and there is not enough space for everybody
- the security of the LN depends on timely txs to be published onchain with predictable fees, and that too is impossible if the network is congested because of the little space it has
Any amount kept on a channel greater than the average fee is de-facto custodial and can be seized by the node you are connected with.
Both problems can be solved by raising the block size, though.
In the long term, nearly every function of the internet will be ported to some layer of the Bitcoin network. The shift to cloud native applications makes it inevitable.
Theoretically, LN can execute millions of tx per seconds.
But there are two major problems with LN:
- you already need to be on the LN to use it, and you can't use it if you don't already own some BTC. You can't receive coins if you don't put some coins to open the channel. But to open the channel you need to do an onchain TX, and there is not enough space for everybody
- the security of the LN depends on timely txs to be published onchain with predictable fees, and that too is impossible if the network is congested because of the little space it has
Any amount kept on a channel greater than the average fee is de-facto custodial and can be seized by the node you are connected with.
Both problems can be solved by raising the block size, though.