It will allow people to make payments directly from their exchange accounts or take custody in their self custodial Phoenix or mutiny wallets β‘π
Discussion
βself custodialβ with the seeds in your phone. Right.
Yes, it is self custodial. It's just not cold.
You don't have a hot wallet you use to make payments?
Yes but you self custody in a hot wallet?
Yes. I have several lightning nodes. I have the keys to all of them. They are hot and always online.
In your view this isn't self custody?
If the bitcoin is locked in a multi sign channel, it is safe. I donβt keep a lot of bitcoin in lightning wallet even for payment. To me there is no difference between a custodial and a non custodial lightning wallet. They are both vulnerable to hacks.
Multi sig
There is a tremendous difference between the two. Most people lose coins because their custodian rugs, not because of hacks.
Exchanges get hacked a lot and lot of people get sim swapped also. Either way Binance enabling lightning withdrawal doesnβt mean you should keep you bitcoin in a non custodial lightning wallet.