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.
tank / Tankred Hase
npub1xy…xn6n2
2024-09-04 09:47:26
Author Public Key
npub1xyd5ja34s4nk0l6urnh69wx9ep6uuxz2ujrkm2f8n6pfhgqa6y5s2xn6n2Published at
2024-09-04 09:47:26Event JSON
{
"id": "09bbc293325c36e9dd1553b6c5dab124913ab9a2e4f9456b0e707bcf88e22691",
"pubkey": "311b497635856767ff5c1cefa2b8c5c875ce184ae4876da9279e829ba01dd129",
"created_at": 1725443246,
"kind": 1,
"tags": [],
"content": "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.\n\n1. C-2-C payments\n2. B-2-B payments\n3. B-2-C payments\n\nIt 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.\n\nFor 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.\n\nI’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.",
"sig": "729dfa40509f9f45af113f0a0606c44bce0c30b2116a891bb419e073518e7ee1d09328cbc30ee11c091133df4b98ba8aa5ee32901513056e3c16fe59614beb81"
}