Lightning Network centralization leads to economic censorship

by Jonald Fyookball

“To play devil’s advocate with myself for a moment, the argument goes like this: ‘Large, expensive Bitcoin nodes are just as bad as large LN payment hubs. A large miner could decide to not include your transaction in block just as a payment channel could decide not to route your payment.’ To that, I would say … A large miner (or even a majority cartel of miners) cannot effectively censor your transactions, because ANY miner can include your transaction in a block. But the same is not true for LN hubs. They can effectively censor your transactions, because NOT any hub can route your payment. (If you have a set of coins in one specific channel, it has to be routed using that channel).” (10/09/17)