Around minute 40 there is a great discussion of “auditability vs privacy” tradeoffs: https://fountain.fm/episode/1FaKA0B4a6wSn7fITcOn
...... something I hadn't fully conceptualized, but when it's explained like this, makes a lot of sense. Basically the L1 can't be fully private if you want anyone with limited storage and compute power to be able to audit it.
Privacy is a good job for L2, which is yet another great reason we should resist bad actors trying to centralize L2s like Lightning.
you don't need large compute to audit it. you just need a proof that inputs and outputs equal zero.
it's a misunderstanding that you need complete transparency to be auditable.
its just a question of how comfortable you are with math. trusting proofs to guarantee supply is just like trusting public key cryptography.
monero bois aren't wrong, they are just early.
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