matt on Nostr: Let’s be clear, if no one steps up and decides to run LSPs because everyone is ...
Let’s be clear, if no one steps up and decides to run LSPs because everyone is worried about regulatory concerns, every bitcoin L2 system is toast - every one that has a reasonable security model relies on some kind of centralized or federated party that has similar concerns, even if they can’t seize funds.
Without any L2 systems everyone using bitcoin will simply use custodial platforms because that’s the only way to get reasonable fees and payment latency.
And don’t go yelling at ACINQ for deciding not to operate Phoenix in the US, the software required to run an LSP is open source, with only relatively minimal liquidity allocation logic required to get started. We need new entrants, and that means new companies who think the risk is manageable (I’m confident it is, but I can’t fault anyone for not wanting to take that risk).
If you see someone suggesting ACINQ should just keep running, the correct response is “well why aren’t you running an LSP”.
Without any L2 systems everyone using bitcoin will simply use custodial platforms because that’s the only way to get reasonable fees and payment latency.
And don’t go yelling at ACINQ for deciding not to operate Phoenix in the US, the software required to run an LSP is open source, with only relatively minimal liquidity allocation logic required to get started. We need new entrants, and that means new companies who think the risk is manageable (I’m confident it is, but I can’t fault anyone for not wanting to take that risk).
If you see someone suggesting ACINQ should just keep running, the correct response is “well why aren’t you running an LSP”.