Re:Richard Stallman: We Can Do Better Than Bitcoin
by nivertech on Friday November 30, 2018 @12:54PM
(#18570901)
Fractional reserve is not about transactions, but about backing for the underlying assets these transactions are "moving".
LN/payment channels are payment methods (think checks or credit cards), while traditional "cryptocurrencies" are systems or records or ledgers (think banks).
The assets are fiat cash and cash-equivalents (electricity, hashing power) inflows. I.e. when somebody mines or buys Bitcoin - money flows into the system, when somebody sells Bitcoin - money flows out of the system. So most cryptoassets today are fractional reserve.
LN/payment channels are payment methods (think checks or credit cards), while traditional "cryptocurrencies" are systems or records or ledgers (think banks).
The assets are fiat cash and cash-equivalents (electricity, hashing power) inflows. I.e. when somebody mines or buys Bitcoin - money flows into the system, when somebody sells Bitcoin - money flows out of the system. So most cryptoassets today are fractional reserve.