Nostr Web Client

Because of the rug pull impossibility and single user final settlement, lightning seems to be in the same category as the base layer, base money with zero counterparty risk.

Everything else seems to be a variant of fiduciary media, with different trust tradeoffs and technological implementation.

Matthew Mezinskis 2y ago

UTXO on base still seems to be a different thing than LN balance (still great obv).

Unless he’s changed his definition, I always refer back to this tweet by #[7]: https://twitter.com/peterktodd/status/1034224329058205696

Reply to this note

Please Login to reply.

Discussion

Max 2y ago

Yet still, lightning (the presigned transaction etc) is equivalent to base money, it is not fiduciary media.

Michael Matulef 2y ago

I agree that it's not fiduciary media, but from a property rights prospective they are still fundamentally different assets.

Keys to a UTXO are bearer assets and lightning channels are smart contracts with those bearer assets.

I think they are comparatively different things. 🍎 and 🍊

Max 2y ago

Single sig script is also a smart contract.

Michael Matulef 2y ago

Do you view them as categoricaly different types of smart contracts then?

Max 2y ago

Not really, it's just different ways to hold base money, I'd say...

Peter Todd 2y ago

Thanks for reminding me. It's still a good tweet!

Max 2y ago

I think we have to assume a correct usage of the software and protocol in order to draw better conclusions.

If I post my private keys, the coins may get stolen.

If I shut down my node, invalid coins may be received.

If I shut down my watchtower, lightning channels may be closed with an old state.