Correct me if i'm wrong, but to open a payment channel with another party on the lightninng network (for example Starbucks to buy coffees) you need an onchain transaction. Then when you finally want to settle all of the lightning network transactions (pay your tab) you need another transaction. So you need at least two onchain transactions for every merchant you want to trade with.
The reason this doesnt scale is because for 100 million people to open one payment channel, it will take over a year to process all of those transactions. That wouldn't happen though as the transaction costs would skyrocket to the point people wouldn't bother.
Am I wrong? Genuinely, this is how I see it and why it cannot work.
The reason this doesnt scale is because for 100 million people to open one payment channel, it will take over a year to process all of those transactions. That wouldn't happen though as the transaction costs would skyrocket to the point people wouldn't bother.
Am I wrong? Genuinely, this is how I see it and why it cannot work.