Cyph3rp9nk on Nostr: Bitcoin architecture We could treat the Bitcoin architecture analogously to the ...
Bitcoin architecture
We could treat the Bitcoin architecture analogously to the memory levels of a PC.
We all know that the data written in the ram memory is susceptible to be lost if we suffer a power outage, but that does not prevent us from using it to our advantage. Data is loaded from the hard disk into the ram memory and this in turn is loaded into the processor cache memory when necessary, and in the same way when that data has to be persistent, it is downloaded back through the different layers of memory to the hard disk.
If we want to use Bitcoin intelligently we should do the same, being aware of the problems we have in each layer or in each technology, since in this case both Liquid and Lightning belong to layer 2.
I don't think brc-20 tokens will create a permanent congestion of the mempool, we are already seeing the mempool slowly emptying, but we have to be prepared for when a major adoption comes and block space are a precious resource, bitcoin was designed this way, it is not a bug, it is its design so that miners can subsist without the block subsidy and be able to keep the network secure.
Some examples of smart usage:
In a high fee environment for example if you run out of bitcoin over lightning and don't want to rely on an Exchange kyc to reload the channel, you will need to send bitcoin on chain to open a channel or to make a swap with the cost involved. If instead you have an intermediate pool of L-BTC (Liquid) you can get LN-BTC with Boltz and recharge your channel with a ridiculous cost of 0.1% and the Liquid fee is insignificant, it is only 100 satoshis.
On the other hand if you want to download accumulated balance from Lightning to Bitcoin in a high fee environment, you can transfer it to your Liquid cold storage that although we could argue that it is not self-custody as Lightning to be federated (if you use lightning without custody because there are not many) is still much safer than having it in an Exchange and from my point of view safer than having it in a Lightning online node, also risking a forced closure of a channel and being charged $ 200 as has happened these days.
In a high fee environment it is also better to accumulate your weekly dca in Liquid to avoid high fees and have bitcoin in your custody, again understanding that Liquid is a federation and does not have the same security as Bitcoin in your custody.
Finally, take advantage when fees are low to transfer your bitcoin holdings to the Bitcoin network or reload the Liquid network.
It all comes down to understanding the different layer 2 technologies and using them to your advantage knowing their flaws and virtues.
We could treat the Bitcoin architecture analogously to the memory levels of a PC.
We all know that the data written in the ram memory is susceptible to be lost if we suffer a power outage, but that does not prevent us from using it to our advantage. Data is loaded from the hard disk into the ram memory and this in turn is loaded into the processor cache memory when necessary, and in the same way when that data has to be persistent, it is downloaded back through the different layers of memory to the hard disk.
If we want to use Bitcoin intelligently we should do the same, being aware of the problems we have in each layer or in each technology, since in this case both Liquid and Lightning belong to layer 2.
I don't think brc-20 tokens will create a permanent congestion of the mempool, we are already seeing the mempool slowly emptying, but we have to be prepared for when a major adoption comes and block space are a precious resource, bitcoin was designed this way, it is not a bug, it is its design so that miners can subsist without the block subsidy and be able to keep the network secure.
Some examples of smart usage:
In a high fee environment for example if you run out of bitcoin over lightning and don't want to rely on an Exchange kyc to reload the channel, you will need to send bitcoin on chain to open a channel or to make a swap with the cost involved. If instead you have an intermediate pool of L-BTC (Liquid) you can get LN-BTC with Boltz and recharge your channel with a ridiculous cost of 0.1% and the Liquid fee is insignificant, it is only 100 satoshis.
On the other hand if you want to download accumulated balance from Lightning to Bitcoin in a high fee environment, you can transfer it to your Liquid cold storage that although we could argue that it is not self-custody as Lightning to be federated (if you use lightning without custody because there are not many) is still much safer than having it in an Exchange and from my point of view safer than having it in a Lightning online node, also risking a forced closure of a channel and being charged $ 200 as has happened these days.
In a high fee environment it is also better to accumulate your weekly dca in Liquid to avoid high fees and have bitcoin in your custody, again understanding that Liquid is a federation and does not have the same security as Bitcoin in your custody.
Finally, take advantage when fees are low to transfer your bitcoin holdings to the Bitcoin network or reload the Liquid network.
It all comes down to understanding the different layer 2 technologies and using them to your advantage knowing their flaws and virtues.