Does LN still have that crazy design where if you lose connectivity your deposit could be lost?
Also doesn't it make Bitcoin even more hyper-deflationary by forcing money to be locked up in LN nodes?
Also doesn't it make Bitcoin even more hyper-deflationary by forcing money to be locked up in LN nodes?
i haven't heard of that. if you aren't monitoring on-chain transactions the other channel party may commit an out of date state, and you may not manage to issue a justice transaction in response.
"watchtowers" are currently in development, to which this burden can be outsourced.
> doesn't it make Bitcoin even more hyper-deflationary by forcing money to be locked up in LN nodes
lightning channels do not permanently lockup bitcoin, no. the channels have a timelock based maximum age, but cooperative peers can agree to finalise and close the channel at any time.
in any case, value can circulate via the lightning network.
In practice, your money should end up feeling more locked up if it is not on LN. LN becomes the checking account to the BTC savings account.
It's designed to be deflationary, i.e. it's designed to MOOOOON and make the early speculators rich. But, like most things in cryptocurrency, that's failed miserably. We now have hyperinflation instead.