Ov1, a Taoist Bitcoiner on Nostr: There's an actual benefit to purposefully amnesiatic data storage to minimize Op Sec ...
There's an actual benefit to purposefully amnesiatic data storage to minimize Op Sec exposure of all historical information. There is a holding cost incurred securing data over time, that's mostly necessary due to the inherent risks of fraud in KYC'd pull request payment systems. Push payments with final settlement place the responsibilities for protecting account balances on the Sender rather than the Receiver.
IF that "push payment" is sent as off chain LN sats then Senders have no ongoing risk of sensitive data enabling account sweeping to be exposed in transit or at rest over time. No payment data honeypot accrues when the Sender's personally identifiable information and account pull request data need not be transmitted, nor be secured physically and digitally.
What your counterparties don't know can't be stolen from them, create liability for them, or be used to prosecute you in a court of law. Same as with cash, instant, final, and private payment under $10k USD amounts do not require knowing your customer's legal NAME. (But, to keep them as recurring customers, getting their Nostr ID tag may be a good idea)
But, I know I'm preaching to the Choir here...
Not everyone understands why KYC has been necessary and the trade offs its failed use has forced on the world. Throughout almost all human history financial privacy was not just normal, it was all anyone ever knew. Experimenting with KYC/AML controls over the last 40 yrs has failed and is no longer needed or useful.
IF that "push payment" is sent as off chain LN sats then Senders have no ongoing risk of sensitive data enabling account sweeping to be exposed in transit or at rest over time. No payment data honeypot accrues when the Sender's personally identifiable information and account pull request data need not be transmitted, nor be secured physically and digitally.
What your counterparties don't know can't be stolen from them, create liability for them, or be used to prosecute you in a court of law. Same as with cash, instant, final, and private payment under $10k USD amounts do not require knowing your customer's legal NAME. (But, to keep them as recurring customers, getting their Nostr ID tag may be a good idea)
But, I know I'm preaching to the Choir here...
Not everyone understands why KYC has been necessary and the trade offs its failed use has forced on the world. Throughout almost all human history financial privacy was not just normal, it was all anyone ever knew. Experimenting with KYC/AML controls over the last 40 yrs has failed and is no longer needed or useful.