argento46 on Nostr: Exactly: custodial IS a problem — IF we are talking about life savings on base ...
Exactly: custodial IS a problem — IF we are talking about life savings on base layers.
It’s not different from the lack of safety of hacking cash in your pocket walking through city. Not in the bank and carries risk but not meaningfully risky.
But if custodial means I can store reasonable amounts reasonably safely in a convenient wallet I don’t have to maintain a node for (currently moderately difficult and moderately risky due to technical ignorance and/or potential hardware or system issues), that is a worthy tradeoffs.
If a custodial solution starts censoring or rugs or is captured, everyone just stops using it. Mass exodus. There is no incentive to be a bad actor in the space and do the risks of centralized convenience wallets go down.
It’s not different from the lack of safety of hacking cash in your pocket walking through city. Not in the bank and carries risk but not meaningfully risky.
But if custodial means I can store reasonable amounts reasonably safely in a convenient wallet I don’t have to maintain a node for (currently moderately difficult and moderately risky due to technical ignorance and/or potential hardware or system issues), that is a worthy tradeoffs.
If a custodial solution starts censoring or rugs or is captured, everyone just stops using it. Mass exodus. There is no incentive to be a bad actor in the space and do the risks of centralized convenience wallets go down.