bitcoin core – Will “Taproot” replace Lightning Network?

With respect to the original Wording of the Question I believe Taproot will actually make the Lightning Network Pointfull instead of Pointless.

While Taproot allows us to save some space on the bitcoin base layer it will not make the lightning network obsolete. Remember the main issue with respect to onchain scaling is that a protocol where every transaction is broadcasted to every participant is just to inefficient if transactions should represent a substantial fraction of monetary payments in the world.

With respect to the Lightning network there are actually many improvements possible for the Lightnign network if Taproot is activated. Most notably the fact that we can have Point Time Lock Contracts instead of HTLCs which give us a way more flexibility in the payment process as addition of points and secrets is linear where as payment hash addition and secrete addition is not linear eg:

H(r1+r2) != H(r1) + H(r2)

The property of linearity allows us to have applications like

  • stuckless payments
  • payment deceolleration
  • escrow services