Hynek on Nostr: Another beautiful consequence of verified contacts being able to issue their own ...

Another beautiful consequence of verified contacts being able to issue their own Cashu tokens is that it simplifies communication within a Lightning channel factory. Once you have verified contacts with their npub, you can coordinate the construction of a new channel factory and, more importantly, modify the distribution of existing virtual channels within the factory.
You can freeze the state of channels and continue clearing via Cashu tokens. Once the new channel distribution is settled, you can redeem the tokens back through your newly established channels.

quoting note1qsr…6awd

Imagine if everyone could issue their own IOUs in sats. I don’t mean just anyone, but literally everyone. You would accept promises only from well-known and verified peers—and only up to a certain amount. You would compare the risk of losing this money with the cost of bitcoin settlement.
During times of cheap block space, like now, you could settle on-chain more frequently. If you have a stable internet connection on your mobile, you could start opening channels with your peers. Once you have a few channels, the incentive to hold IOUs decreases. And with further optimizations, it diminishes even more.
This could extend the reach of the Lightning Network, connect the missing points, and, over time, help build a truly resilient network. note1jzd…squ5