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Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

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Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#81
post #78
post #51

Earlier quoted context omitted.

[replying because I previously downvoted and another respondent didn't know why people were downvoting.] > Really? From your description it sounds like I would have to trust Sparkswap and some other unknown bank with my fiat. Fiat transactions have extremely high reversibility often for months after the fact, and law enforcement is actually responsive around fiat theft in a way they haven't been around cryptocurrency…

Readers should now this is one of the main Bitcoin developers behind the "fee market" and in 2017 celebrated $50 fees, caused by his ideas.[0] While being the CTO of Blockstream, a company whose business plan is to create side-chains like LN. By keeping on-chain fees high they managed to artificially create a need for side-chains, which they could fill with LN and recently Liquid. Anyway that's a lot of words to not…

Transitioning from subsidy to transaction fees to reward miners existed as an idea before nullc. It's in the whitepaper for crying out loud.

>Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free.

At any rate, the rest of your commentary is inaccurate. Lightning channels can go offline and be completely fine. I've had one offline for months before I brought my node back online and everything was fine.

The inbound liquidity issues are being resolved through dual-funded channels, which means both parties of a channel coordinate to start a channel off with the liquidity balanced between them instead of completely on one side.

LN is in fact still in beta, and you should expect bugs like any other beta software. That should come as no surprise.

Lightning is however in a state where it is more or less safe to use. The twitter bot I run that relays Blockstream Satellite transmissions has on order of 3,000 tweets -- which means there have been 3,000 payments with Lightning for just this one service.

Keep in mind Lightning in general is more suited to small amounts given the very cheap fees and divisibility down to 0.00000000001 of a bitcoin.

So to sum it all up, your post is pretty inaccurate.

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#82
post #81
post #78

Earlier quoted context omitted.

Readers should now this is one of the main Bitcoin developers behind the "fee market" and in 2017 celebrated $50 fees, caused by his ideas.[0] While being the CTO of Blockstream, a company whose business plan is to create side-chains like LN. By keeping on-chain fees high they managed to artificially create a need for side-chains, which they could fill with LN and recently Liquid. Anyway that's a lot of words to not…

Transitioning from subsidy to transaction fees to reward miners existed as an idea before nullc. It's in the whitepaper for crying out loud. >Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free. At any rate, the rest of your commentary is inaccurate. Lightning channels can go offline and be completely fine. I've had…

> Transitioning from subsidy to transaction fees to reward miners existed as an idea before nullc.

That's a completely different idea than having full blocks where users compete for fees. You can also fund miners via lot's of transactions instead of few transactions with large fees.

> Lightning channels can go offline and be completely fine.

That's only because the other party didn't do anything. It's like saying leaving your door unlocked and open is safe because you did it once and nobody walked in to steal your stuff. You were lucky.

> Lightning is however in a state where it is more or less safe to use.

I did post link to a recent bug where LN is exploited to steal users funds didn't I? This kind of misinformation that "LN is more or less safe" really downplays the existing issues. It is beta software and should be treated as such.

> So to sum it all up, your post is pretty inaccurate.

To sum it all up, I was saying transactions in LN are different than Bitcoin transactions and that LN is only in beta, which you also confirm.

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#84

Earlier quoted context omitted.

what would you say are the real pain points that are being solved here?

Namely that Im not using coinbase, who are essentially the facebook of the crypto world.

............

how do you make that leap exactly? and how do you think Sparkswap is going to be any different than coinbase?

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#85
post #9
post #8

Can you go into a little more detail about who owns the bank account that users are depositing into when they use sparkswap?

AnchorUSD is our payment partner who operates the API we interact with (it's a custom API that they built for us). The escrow account is held with a trust company in AnchorUSD's name, but is designed so that only the users they onboard can access the funds. Funds cannot be legally used for any other purpose.

thank you for making this public, even though it may not be perfect.
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