Comment on Over 2 percent of the US’s electricity generation now goes to bitcoin

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General_Effort@lemmy.world ⁨9⁩ ⁨months⁩ ago

Are you paid to post that nonsense?

For those in blissful ignorance: This uses so-called channels between participants. Opening a lightning channel means, basically, putting bitcoin in “escrow” on the blockchain. This requires multiple transactions on the blockchain. Bitcoin doesn’t even have enough capacity to open a channel for each baby being born.

The amount that both sides put in “escrow” is the max payment imbalance that a channel can accept. Say, you want to use a channel to buy a car for $20k, then you need a channel that both you and the other guy have put in $20k in bitcoin.

If some calamity happens, these funds are lost in nirvana.

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