[tlrobinson]

This is incorrect. Lightning Network transactions are trustless just like Bitcoin [1], even over multiple hops. You set up a channel with one or a few peers and then can pay or be paid by anyone in the network [2] with no counterparty risk.

1. With the caveat that you (or a service you delegate) need to be prepared to broadcast a transaction within some time period if a peer tries to defraud you, which is unlikely since if they fail they lose their funds in the channel.

2. Assuming enough liquidity in the network