Replying to Avatar vnprc

Can we hold a cashu mint's bitcoin balance in a Spillman channel?

Alice opens a Spillman channel to Minnie the mint. Alice sends a channel update tx along with her blinded secrets when requesting some ecash. Alice trades this ecash to Bob. When Bob withdraws an ecash balance from Minnie the Spillman liquidity flows from the Alice-Minnie Spillman channel into Minnie's lightning node.

Bonus points if the lightning protocol is updated to recognize unidirectional channel liquidity natively. Good luck with that. 😅 I try to avoid solutions that require permission or consensus. You're gonna run face first into the anti-ecash mind virus and get shut down before you get started. Or, more likely, nobody listens or cares and you have to build your own solution.

The lesser solution is to unify Spillman and lightning liquidity at the app level. Now you have to close Spillman channels and move the balance on-chain into the lightning node wallet to reopen bidirectional channels. C for effort I guess.

Best solution: we don't even need lightning anymore. If Bob is a merchant who expects to consistently withdraw from the mint, Bob pays a fee for the mint to open a channel to him. Every withdrawal is a simple Spillman update. No liquidity management necessary. When the channel timeout approaches Bob pays an on-chain fee to refresh the channel. EZPZ. No permission needed. No convincing hostile parties. Lightning network found dead in Miami condo.

Let me know if you want to start vibing on a Spillman rust crate. I'm here for it. 🤙

What about e-hash though? 😅

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Lock up ehash tokens in a P2PK output. The pool treats that pubkey as a bitcoin address and includes it in the coinbase of the block templates it broadcasts. When a block reward is found that ehash gets swapped for a Spillman channel. Ehash without this locking condition can be swapped for ecash.

Open question: can you ever unlock this ehash? I think no because that complicates block template construction. What if the user unlocks their P2PK ehash, sells it, and then a block is found on an old template that included that coinbase output? The user has effectively double spent those coins.

Simplest solution is to lock the coins with a long (infinite?) timeout. Once you swap your ehash for a coinbase output you can't unlock it again.

If you are concerned that my offer to help build Spillman channels will delay work on ehash then my answer is that these solutions are all necessary to reinvent the mining stack and fix bitcoin.

Same with nostr mempool.

It's better to get a new builder off to a strong start in a promising direction than rush out an incomplete solution.

Lower your time preference. Build shit that will last. It takes many bricks to build a cathedral.