[cryptonerdza45]

What do you mean? How do you know if your peers are cheating in the Bitcoin network? When they've broadcast a transaction that spends your money? At this point it's already too late.

In teechan the processor is responsible for holding your funds until you take them out of the channel. If somehow an attacker could steal them (which is very difficult to do considering the security model!), you would know that they cheated when they spent your funds on the network. I don't see the difference?

[jcoffland]

The teechan processor could steal your money because it's not secure.