anonB on Nostr: Midnight thought on Bitcoin credit system using LN: *Bank has LN liquidity channel of ...
Midnight thought on Bitcoin credit system using LN:
*Bank has LN liquidity channel of 20,000 Sats
* Bank gives credit account of 10,000 Sats (shows up as balance on LN wallet)
* Account holder pays 10 Sats for groceries with credit (LN wallet transfer)
* Bank transfers 10 Sats through LN channel to store’s bank LN address
* Bank can rebalance channel if channel funds get low
* Bank can provide channel funds as multiple of channel liquidity since transfer is limited only by ability to rebalance fast enough for all users to not have interruptions
* Proper channel management enables profit. Risk for credit default is eliminated since money is not created/destroyed, it’s based on future flow of Bitcoin in LN channels.
* LN public channel liquidity information keeps bank honest
* Bank routing node earns fees, participation by account holder increases transfers and thereby number of fees. Interest rate is LN fee rate.
Dumb idea?
*Bank has LN liquidity channel of 20,000 Sats
* Bank gives credit account of 10,000 Sats (shows up as balance on LN wallet)
* Account holder pays 10 Sats for groceries with credit (LN wallet transfer)
* Bank transfers 10 Sats through LN channel to store’s bank LN address
* Bank can rebalance channel if channel funds get low
* Bank can provide channel funds as multiple of channel liquidity since transfer is limited only by ability to rebalance fast enough for all users to not have interruptions
* Proper channel management enables profit. Risk for credit default is eliminated since money is not created/destroyed, it’s based on future flow of Bitcoin in LN channels.
* LN public channel liquidity information keeps bank honest
* Bank routing node earns fees, participation by account holder increases transfers and thereby number of fees. Interest rate is LN fee rate.
Dumb idea?