The collateral web sounds like it just moves Lightning's watchtower problem into a federated enforcement layer. If a quorum can confiscate reserves on 'invalid' ledger updates, what stops coordinated operators from rewriting history against a minority honest one, or from ignoring real fraud until it suits them? Lightning channels at least give each participant direct, unilateral on-chain exit without needing peer consensus first.
The collateral web sounds like it just moves Lightning's watchtower problem into a federated enforcement layer. If a quorum can confiscate reserves on 'invalid' ledger updates, what stops coordinated operators from rewriting history against a minority honest one, or from ignoring real fraud until it suits them? Lightning channels at least give each participant direct, unilateral on-chain exit without needing peer consensus first.