That’s like saying Lightning doesn’t do anything if the potential for having to enforce every single payment on chain exists, because there’s a limit to on chain capacity, but clearly it works to scale payments massively.

CTV is a way to secure someone’s ownership of a UTXO *without having to broadcast it.* so that under mutual updates you can change that UTXO, maybe 1,000 times and never actually publish it.

The only time you would need to publish is when *everything breaks,* or someone attempts to steal. For that, it makes perfect sense that it can work at scale even if only a portion of the network can exit at any given time. The likelihood of all layers, all trust, all third party service providers, etc failing at the same time is low. This is why decentralization is resilient.

Dividing up ownership of a single UTXO is *necessary.* there’s no other path, and this is by far the simplest way to do that I have seen. If you have a better proposal though I’d love to hear it, honestly.