Replying to Avatar calle

Cashu can be useful in very low-bandwith situations with bad connectivity (we can be better here and shave off almost 50% of the token using a binary encoding when we stabilize a bit) (or with no connectivity at all!) and it can also work in extremely high-throughput scenarios with millions of txs per second by deploying multiple instances of the same mint at different locations globally (so that the bottleneck is the db). I'm working on that for Nutshell right now.
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Orange Crush 1y ago

Any work on publicy auditable lightning node balances for cashu mints?

When a mint has a high fee force close channel, could you arrive at a situation where the mint has more issued ecash than sats?

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calle 1y ago

I think Lightning cannot be audited (except if all channel partners somehow come together and report their balances, and you have no unannounced channels)...

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Brunswick 1y ago

The sats are still on the mint, they are just moved onchain in the node's wallet. The sats aren't lost per-say but not retreivible over the lightning network. If you trust the mint operator, and he is trustworthy, he will manually redeem the sats for you after you send him the cashu tokens. Remember, you HAVE to trust the mint operator to use his mint, and that means if he deserves your trust he won't rug you.

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Orange Crush 1y ago

This isn’t quite what I meant. I am referring to the force close fees. I know from experience that you can run a lightning node at a loss. If a mint operator doesn’t charge sufficient fees on lightning transactions, then a force close could cause them to run at a loss (because of on-chain force close fees), which would mean that the mints liabilities over time (ecash) could exceed total liquidity (on-chain + lightning channel) if the mint operator doesn’t provide some liquidity coverage. This is why public auditing may be important.