I think the most important thing here is that most people will still use custodial solutions. Like you say, they are the ones with the least friction (to the average person). In that sense lightning works perfectly
Yes, there is a rug risk, but I haven’t had any payment issues with my custodial lightning wallets. That’s what most people will look for
I do think something will replace lightning eventually though
I’ve had payment issues with WoS lol but you may be right which is concerning because people will get rugged eventually
My lightning is not custodial and works perfectly as well. To me, the rug risk is worth setting up a sovereign solution.
Custodial solutions are fine. They are better than fiat custodial solutions because the ability to instantly withdraw your money keeps providers very honest about their real holdings. They offer some convenience over self custody, and for small amounts that trade off makes sense.
My question is, what do you not like about the LSP model as demonstrated by Phoenix or Zeus? I think that having a single channel with a trusted provider who manages your liquidity is the best of both worlds. Self custodial, but very easy to onboard and manage.
Just to be clear, my point of view relates to the average person and not myself, I run Phoenix alongside WOS and am currently in the process of setting up a node
My point is more that most people won’t want to deal with the hassle, the same way they accept a lower interest rate on their savings account than they could make on the markets, for example. People still like custodians
Banks have rug risk too and most still trust them enough to keep all their money in them
