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Fedimint is a shitcoin
Discussion
No, it's the most groundbreaking money warehouse technology, ever.
A truly federated money warehouse wasn't even dreamed of a couple decades ago.
There’s nothing innovative about issuing IOUs.
Bitcoin, and multisig specifically, made federated custody of base money possible, that's a monumental breakthrough in 2012 or so.
Eric discovered an obscure cryptography paper that made federated blind signatures possible, that's fedimint 2021 or so.
Combine both, and you have a federated money warehouse with federated custody and federated anonymous IOU accounting.
Money warehouses have always been, and will continue to be, an ethical and useful service that entrepreneurs provide. These two tech breakthroughs just take it to the next level in terms of security and trust assumptions.
Fedimint transactions potentially both faster and cheaper than lightning transactions.
You do give up custody, so there is that.
But backed by Bitcoin, so no shitcoin!
What makes #Bitcoin special is that it is not backed. Bitcoin is the thing itself. This is true on Lightning as on main chain.
Everything else is an IOU, and thus shitcoin.
I'd still claim that the lightning-network is based on a form of IOUs and I love it regardless 🧡
In #Bitcoin, the token is the thing itself. This continues to be the case in Lightning, where channel-update transactions are themselves legit Bitcoin transactions. Nothing is owed. Neither channel participant is a creditor nor debtor of the other. It’s a peer-to-peer, electronic, cash system.
Problem is you have several competing channel-update transactions just hanging there until one of them is used and then it's a race where someone with a newer update-transaction can overrule the old, but only for a limited time period.
So the participants can be perceived as creditor or debitor of each other.