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- Many people refer to the aggregate of all lightning channels as 'The Lightning Network' but this is a false premise. There is no singular 'Lightning Network' but rather many payment channels between distinct peers, some connected with each other and some not. - Lightning as an interoperable payment protocol between professional custodians seems to have found solid product market fit. Expect significant volume, adoption, and usage going forward. - Lightning as a robust sovereign payment protocol has yet to be battle tested. Heavy reliance on Tor, which has had massive reliability issues, the friction of active liquidity management, interactivity constraints on mobile, and lack of strong privacy guarantees put it at risk.
ODELL
'The Lightning Network' Does Not Exist
Many people refer to the aggregate of all lightning channels as 'The Lightning Network' but this is a false premise. There is no singular 'Lightnin...

Replies (9)

There's no need to introduce the concept of multiple lightning networks; it's unnecessary nuance. Lightning functions similarly to the Internet with many interconnections, some of which will not work reliably. Success is not guaranteed for custodial lightning providers that will be easy targets for regulators concerned about sanctions, terrorism, etc. The future of sovereign lightning operations has fewer embedded assumptions and (with good privacy practices) be able to effectively bypass regulatory clampdown around private payments. Continued operations will be highly valuable to be the steadfast, reliable, and counterparty-risk-free option in a world of traditional payments plagued by debt. Don't ignore the market incentives to improve the user experience for sovereign lightning because this market is gargantuan.