What is Nostr?
tank / Tankred Hase
npub1xyd…n6n2
2024-09-04 09:47:26

tank on Nostr: I think it might be useful distinguish between multiple use cases and threat models ...

I think it might be useful distinguish between multiple use cases and threat models for Bitcoin as a medium-of-exchange and acknowledge that these are being served by different architectures.

1. C-2-C payments
2. B-2-B payments
3. B-2-C payments

It seems to me 1. requires trust-minimization and high privacy. This use case is currently being served by LSP based self-custody Lightning wallets. And also by Cashu/Fedimint though these do leverage local trust and social incentives to share UTXOs.

For 2. and also in partially for 3. I think federations like Liquid leverage trust between businesses. So not on a local/private level but on a corporate level. Trust relationships in business can also be viewed as a type of social inventive structure to scale UTXOs but these are more abstract. So it makes sense that these federations have more members and I hope we will see more than one competing with each other.

I’m still wrapping my head around Liquid, so I need to give this more thought. But it seems useful to reason about it that way.
Author Public Key
npub1xyd5ja34s4nk0l6urnh69wx9ep6uuxz2ujrkm2f8n6pfhgqa6y5s2xn6n2