2 upvotes, 1 direct replies (showing 1)
The way I understand it, coupled with segwit, it is an IOU that either party can resolve on demand. In fact I don't know if an IOU is the best analogy since with an IOU, the person can just disappear or decide to not pay. LN is more like a signed and notarized contractual agreement with the house put up as collateral.
Comment by killerstorm at 22/12/2017 at 06:58 UTC
1 upvotes, 0 direct replies
Best analogy is cashier's check. It's guaranteed by the network.