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.
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.