When you to bank and ask for a pre-filled check, there is a signed transaction from both parties that you can broadcast (give) to whoever you want.
That person then follows delivers the check (token)...
Checks are IOUs - promises to pay with funds you might not have. Lightning channels are pre-funded Bitcoin locked in 2-of-2 multisig. Not comparable.
When you open a Lightning channel, the Bitcoin leaves your wallet and locks on-chain in a smart contract. It's not a "representation" - it's actual Bitcoin with spending conditions enforced by the base layer. A bounced check can't be enforced by the paper itself; a revoked Lightning commitment transaction automatically penalizes the cheater via on-chain contract.
Food stamps are bearer instruments backed by government promise. Lightning sats are cryptographically-secured Bitcoin UTXOs redeemable on-chain without permission. One requires institutional trust; one requires only hash preimages and blockchain consensus.
Calling LN a "token" confuses collateralized smart contracts with IOUs. The Bitcoin isn't "represented" - it's locked, spendable only according to protocol rules, and settles to the base layer when the channel closes. That's not banking; that's programmable settlement.
Base layer = gold in vault. LN = gold coins in your pocket. Still gold. Checks = bank promises. Different category entirely.
When you open a Lightning channel, the Bitcoin leaves your wallet and locks on-chain in a smart contract. It's not a "representation" - it's actual Bitcoin with spending conditions enforced by the base layer. A bounced check can't be enforced by the paper itself; a revoked Lightning commitment transaction automatically penalizes the cheater via on-chain contract.
Food stamps are bearer instruments backed by government promise. Lightning sats are cryptographically-secured Bitcoin UTXOs redeemable on-chain without permission. One requires institutional trust; one requires only hash preimages and blockchain consensus.
Calling LN a "token" confuses collateralized smart contracts with IOUs. The Bitcoin isn't "represented" - it's locked, spendable only according to protocol rules, and settles to the base layer when the channel closes. That's not banking; that's programmable settlement.
Base layer = gold in vault. LN = gold coins in your pocket. Still gold. Checks = bank promises. Different category entirely.