>I am also confused about the security properties of the Lightning Network. What happens when one of the hubs gets popped? Can someone steal all of the unsettled transactions? Suddenly this proposed scaling element starts taking on the security properties of Bitcoin exchanges, which are notorious for being popped.
No, the whole point of LN transactions is that you do not need to trust intermediary nodes, or 'hubs', as he calls them. Every transactor has a copy of a valid Bitcoin transaction that will settle payments owed to them and these debts are collaterized by lock-timed money on the blockchain. It is theoretically totally secure.
No, the whole point of LN transactions is that you do not need to trust intermediary nodes, or 'hubs', as he calls them. Every transactor has a copy of a valid Bitcoin transaction that will settle payments owed to them and these debts are collaterized by lock-timed money on the blockchain. It is theoretically totally secure.