Comment by [deleted] on 12/01/2018 at 18:26 UTC

3 upvotes, 1 direct replies (showing 1)

View submission: ⚡ Lightning Network Megathread ⚡

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What is the incentive to use a cold wallet / hot wallet system? Why not just ONLY use my Trezor and don't even bother having a phone wallet?

Answer: That's totally up to you. If you can figure out a way to use Trezor that works for you where you don't need a phone wallet, awesome.

Similarly, if you don't care about fees and don't mind paying them, staying on chain is totally fine.

Most of us other people would rather pay $4 to open a channel and use that one channel to transact back and forth 100s or 1000s of times, maybe if we're unlucky or bad timing, we'll have to top it up or take some out... but $4 x 7 is waaaay better than $4 x 100.

We could go on a whole back and forth about "nuh uh!" "yah huh!" about whether or not lightning users will actually be able to survive off one channel alone... but imo, if you don't want to route, only accept and make channels to one other node, that way you'll be on the far edge and there would be no possible route through you.

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Comment by [deleted] at 12/01/2018 at 18:30 UTC

10 upvotes, 3 direct replies

Although imo, lightning will be best used by exchanges.

I work at an exchange, and 98% of our withdrawals are to known addresses of other exchanges.

If we had channels with all the exchanges, it would probably be some insane back and forth on those channels...

guess what that means? less tx on chain. less fee pressure. Lower fee rates getting into blocks... and people like you who don't care about lightning benefit.

I see no losers in this situation.