Tim Bouma on Nostr: Proof of Liquidity > Proof of Reserves. This is the way for the new banking system, ...
Proof of Liquidity > Proof of Reserves.
This is the way for the new banking system, where there is a global denomination (sats) and every bank is subject to a potential bank run at all points in time. The only way to survive in this ecosystem is to be perfectly liquid and perfectly honest. A bank can be fractional if they wish, but if it impacts liquidity, they are immediately branded as such, and the funds flee until the rug is pulled. The system naturally self-calibrates.
This is how the banking system used to work in Scotland and Canada, until central bank monopolies took over.
I've built a thing: The Cashu mint Round Robin auditor
An app that perpetually monitors a list of mints by randomly sending Lightning payments between them. Forever. The sats go in a circle until all is lost to fees or rugs. If a mint fails to pay an invoice, it is marked with a scary red label.
You can donate Ecash from any mint to add it to the list of audited mints!
https://audit.8333.space
Published at
2024-10-10 10:28:51Event JSON
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