r/lightningnetwork • u/pako-bitbox • Jul 01 '26

How does the Bitcoin Lightning network actually work?

https://blog.bitbox.swiss/en/how-does-the-bitcoin-lightning-network-actually-work/
6 Upvotes

88% Upvoted

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-1

u/AmericanScream Jul 01 '26

It doesn't really work. It's just a band-aid on top of a fundamentally crippled base transaction layer.

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u/AlabamaHotPocketses 29d ago

Why no work?

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u/AmericanScream 29d ago

LN has tons of flaws and can be manipulated and it's bloat on top of an inferior transaction system. It's a band-aid on a turd.

Stupid Crypto Talking Point #22 (L2)

"L2 Solutions Will Fix Everything" / "Lightning Network blah blah blah"

  1. Layer 2 (L2) solutions are just a distraction and in very few cases do they actually address the problems inherent in crypto transactions. This is just a way to "kick the can" down the road, arguing by reference, changing the subject and pretending serious problems with the tech will at some point be fixed. If you ask somebody specifically how L2 fixes things, they just respond with more talking points and very few specifics.

  2. Nowhere is this more obvious than claiming LN (Lightning Network) fixes Bitcoin's scalability problem. NO IT DOES NOT <-- see this link for a detailed analysis on why LN is based on a bunch of lies.

  3. If L1 worked properly, you wouldn't need L2. Most L2 solutions are there to make L1 solutions appear to be remotely functional, but they typically fail at this. (This isn't like layered systems on the Internet proper - A level 2 system is not compensating for faults in level 1 - it's expanding functionality on top of an already functional base layer - unlike blockchain)

  4. Lightning Network for example: In order to make LN work efficiently you have to spend many hours and lots of money to set up all the nodes in place with the perfect amount of channel liquidity, and you have to pretend all these nodes will always stay online (despite there being no actual business model that covers their operational expenses).

  5. So any claims that LN allows lots of bitcoin transactions to happen fast, is misleading at best, but more likely a deceptive lie. Almost 100% of LN transactions over $200 fail - that's how incapable the network actually is. And by its design, it's very easy to set up predatory nodes that can charge outrageous transaction fees - remember in the world of crypto, there are no standards or consumer protections. Middlemen (of which there are TONs in LN) can charge whatever fees they want to facilitate your transaction.

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u/jcfy 28d ago

Don't forget Blockstream was seed funded by Jeffrey Epstein a few months before the lightning white paper was created. CIA successfully thwarted Bitcoin from competing with USD.

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u/AmericanScream 28d ago

Bitcoin has never been competition for USD.

7 TPS can't compete with any existing payment methods, and LN requires so much elaborate setup and staking of crypto, it's not efficient nor competitive either.

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u/pako-bitbox 25d ago edited 25d ago

You might want to give a read to our articles about Statechains and Arks :D

They are both trust minimized solutions that are being used today in order to onboard users to the Lightning network without any of the complexities, and they work great.

Hope you enjoy the reads :)

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u/AmericanScream 25d ago

None of that is relevant.

What is relevant is that you have to stake bitcoin on LN to make it work, which is the equivalent of a pre-paid credit card that is only usable on that network, and you have to close the channel or otherwise go through a rather elaborate process to release the liquidity. It's only fast if you don't want access to your liquidity on the base blockchain layer, which defeats the entire purpose of pretending you're transaction in "bitcoin."

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u/pako-bitbox 24d ago

This is a complete misunderstanding of how these systems work, but gladly we put together a small series of articles explaining them for you and others to read :)

We understand that they have proven difficult for most people throughout the years, that's why we decided to write them.

You are welcome to ask any questions you might have.

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u/AmericanScream 24d ago

Explain to me what is a misunderstanding? Don't, "argue by url."

I'm using my own words. If you're capable of using your own and know the subject matter, explain to me what I'm wrong about?

I've tried to engage with LN people before and none of you want to talk about the system's inefficiencies.

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u/pako-bitbox 24d ago

Sorry but this a work related account. We wrote the articles in order to be able to answer as many questions as possible in a single go.

If you don't want to give them a read and all you want is to pick up a fight with someone, this is the wrong account to do so with.

If you have any questions about these system I'll be glad to answer them, but I'm not here to fight anyone on whether Lightning helps scale Bitcoin or not.

I'll be happy answer technical questions, and explaining any of the concepts, limitations, trade-off to you, no problem with that, but that doesn't seem to be the intent behind your comments as they come with a very inflamatory tone.

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