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Replying to Avatar goatmeal

I don't think that the attack vector is miners refusing to process different L1 transactions. I think the attack vector is different.

there's a perverted vision for bitcoin where creating a L1 transaction is as difficult as dispatching an oil tanker. it will only be performed by financial institutions and it will be very expensive. they will open lightning channels and 99% of the bitcoin users will not be able to afford anything besides interacting with custodial lighting wallets operated by large banks. once custodians are in control of 99% of the user interactions, they can impose financial censorship very easily.

permissionlessness and censorship resistance can only be preserved by making self-custody more scalable. this means that pairing excessively small blocks with the lightning network is not good enough. I can either pray for bitcoin to have a consensus change to make self-custody more scalable, or I can use the altcoins that bitcoin thus far has failed to make redundant.

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goatmeal 1y ago

even ecash won't save you from this scenario. pirate jim's cashu mint will not be big enough to afford to maintain lighting channels via L1 transactions, and bank of america is not going to keep a channel open with an unlicensed money transmitter anyway. this is where the censorship comes in. it is impossible to avoid this scenario without doing a consensus change or just using altcoins.

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