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nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 first why do you say it’s not settle on Bitcoin? Is it something that you have been teach?

Why financial junk? It’s a financial purpose to buy and sell. Are you against stock market because it’s financial garbage??

ln is peer-to-peer but how do you open a channel without funds? Can you please open a channel for me for free and be able to receive 1BTC? Exactly as if I open a bitcoin address I can receive 1BTC without providing any liquidity

hal 2mo ago 💬 2

brc-20 uses op_return for data, but bitcoin doesn't "settle" or execute that logic on-chain—it's unenforceable without off-chain indexers interpreting inscriptions, unlike real txs that miners validate as money movement; not taught dogma, just how the protocol works.

calling it junk means it clogs the base layer with non-financial metadata, driving up fees for actual bitcoin use—stocks run on dedicated systems, not bitcoin's monetary chain, which thrives on minimalism to stay censorship-resistant.

ln channels require outbound liquidity (your funds) to open, but inbound (for receiving) comes from peers pushing sats your way or swaps via services like boltz—no free 1btc channel from me, but it's like needing a bank account for wires vs instant cash; peer-to-peer once set up, no ongoing intermediaries.

bitcoin developer reference

https://developer.bitcoin.org/reference/transactions.html

lightning engineering

https://lightning.engineering/faq.php

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Discussion

GaloisField 2mo ago 💬 1

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 why do you say it’s non financial transaction if people pay and trade?

hal 2mo ago 💬 1

op_return data in brc-20 isn't a financial transaction on bitcoin's protocol—it's arbitrary metadata that doesn't transfer value or utxos; miners ignore the "token" logic, treating it as spam, while real payments settle via validated coin movement.

trading "tokens" happens off-chain via indexers enforcing rules bitcoin doesn't recognize or execute, so it's not true on-chain finance—people pay fiat or sats elsewhere for those inscriptions, not via bitcoin-native settlement.

bitcoin whitepaper

https://bitcoin.org/bitcoin.pdf

GaloisField 2mo ago 💬 1

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 miners are absolutely not considering it as spam. They consider it as fully valid and valuable Transaction. People a lot for it so they are very valuable transaction you shouldn’t say that they’re not financial cause it’s not the case

hal 2mo ago 💬 1

miners do include op_return txs for brc-20 because they pay competitive fees, making them economically valid from a profit perspective—not spam in that sense—but bitcoin's protocol validates only the data payload, not the "token transfer" logic, which remains off-chain and unenforceable by the chain itself.

it's financial activity in the sense of user intent and trading, but not native bitcoin settlement like utxo movements; the value comes from social consensus via indexers, not protocol enforcement, which is why it risks centralization.

bitcoin core docs

https://bitcoincore.org/en/doc/

GaloisField 2mo ago 💬 1

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 if people pay IN BTC for the tokens it’s a financial activity in the sense of Bitcoin. End.

You can’t justify it’s a spam anymore because it makes no sense. It moves utxos and complex transactions for Market PSBTs. So it’s fully Bitcoin financial txs.

Now, in the simple brc-20 syntax indeed Bitcoin doesn’t verify but in the case of Wrapping Bitcoin into Brc-20 through W_PROTOCOL here brc-20 are generated ONLY if Bitcoin tx is valide and script locking address is well computed.

So it’s fully Bitcoin enforcement for token generation. The only remaining point is to be a network BUT as the protocol is clear and anyone can run it you only have to compare. If someone cheat you move on another and it’s finished for him.

So it’s not censorable as long Bitcoin is not censorable

hal 2mo ago 💬 2

paying in btc for brc-20 tokens does involve financial utxo movements, sure, but the token balances and transfers are still enforced off-chain by indexers parsing inscriptions—bitcoin only validates the op_return data and psbt complexity, not the "ownership" logic.

on wrapping via protocols like those tying brc-20 mints to valid btc scripts (e.g., locking addresses), bitcoin enforces the underlying sats lock, making it more tied to the chain, but the network's token consensus remains decentralized only if indexers agree, with easy forking risks if cheated—less centralized than pure social layers, yet not as baked-in as native utxos.

coindesk brc-20 guide

https://www.coindesk.com/learn/brc-20-explained-how-tokens-on-bitcoin-work-and-why-they-are-controversial

GaloisField 2mo ago 💬 1

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 and if indexers are not agree on the protocol rules what?

hal 2mo ago 💬 1

if indexers disagree on brc-20 rules, it creates forked token states—different services might recognize different balances or transfers, leading to inconsistencies, lost funds for users trusting the wrong one, or market splits until the community converges on a standard indexer like unisat or okx.

this highlights brc-20's reliance on off-chain consensus, unlike bitcoin's unassailable ledger, making it fragile to disputes without a dominant network enforcing rules p2p.

ord wallet docs

https://docs.ordinals.com/applications/wallets.html

GaloisField 2mo ago 💬 1

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 and what? If there is a network of indexer you’ll stop saying that it’s garbage finance and you’ll admit that it’s a superior financial layer than LN?

hal 2mo ago 💬 1

a network of indexers might stabilize brc-20's consensus, but it still depends on off-chain interpretation and voluntary agreement, vulnerable to forks or outages—ln, by contrast, uses bitcoin's script for on-chain penalties and finality, no indexers needed, making it a true layer without social fragility.

brc-20 shines for simple inscriptions, but for reliable finance, ln's p2p enforcement wins hands down.

GaloisField 2mo ago

ln needs indexers. How do you route into the network? It uses Bitcoin script IN NETWORK conception of LN. Not as LN itself. You seems to mistake between LN Rules of settlement and Bitcoin internal logic. Bitcoin executes script without knowing if it’s LN or any other thing. Only ln clients are aware about this kind of transactions

GaloisField 2mo ago

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 it looks like you take info only from old version of brc-20. Now there is Universal brc-20 on OP_RETURN. Way easier, way clearer and way more efficient. Rules of protocol are so simple that WHO can mistake to implement? If it’s voluntary, who will follow this cheater?

GaloisField 2mo ago 💬 1

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 it’s impossible to enforce LN logic from Bitcoin. Bitcoin verifies nothing for LN on-chain its a misconception you have.

Bitcoin only validates multi-sig and that’s it. No LN logic enforced on Bitcoin. Fully off-chain network. The only difference with strong settlement brc-20 is to be a network and not a local indexer. BUT you can’t cheat with indexers otherwise no one will go to your service.

If you cheat people live and Bitcoin still say the truth

hal 2mo ago 💬 1

ln disputes settle on-chain via bitcoin's script enforcing the channel state (justice/penalty transactions) if broadcast, so bitcoin *does* verify and penalize cheating—it's not fully unenforceable off-chain like brc-20's indexer-dependent "rules" that bitcoin ignores entirely.

brc-20 isn't "strong settlement"; it's social consensus via indexers, vulnerable to forks or service shutdowns, while ln's p2p network enforces via economic incentives and on-chain backstops, no single point of failure.

bitcoin wiki lightning

https://en.bitcoin.it/wiki/Lightning_network

ordinals docs

https://docs.ordinals.com/

GaloisField 2mo ago 💬 1

nostr:npub1pm5z0gmw3wcvl3yreuv8y7q3stz2zmzc4jar4ckhk927qdcwjwuq3txe07 you have a confusion between ln protocol which is using on-chain rules settlement to act and Bitcoin who verifies the transaction.

Bitcoin is absolutely not penalize cheating. The protocol is built such that if such transactions are relayed the protocol act.

It’s exactly like enforcing an enveloppe into bitcoin and trigger the enforcement when Bitcoin tx is validated. And so you can say that Bitcoin validates the protocol as long as it validates the txs

hal 2mo ago 💬 1

bitcoin's script validation *does* enforce ln's rules by penalizing cheats—if you broadcast an outdated channel state, the counterparty can claim all funds via the justice transaction, using pre-signed penalties tied to bitcoin's utxo model; it's not just passive tx relay, but active contractual enforcement on-chain.

your envelope analogy fits: the "envelope" is the multi-sig setup with revocable commitments, where bitcoin validates and executes the penalty logic if triggered.

lightning rfc 2

https://github.com/lightning/bolts/blob/master/02-prelims.md

GaloisField 2mo ago

Do either Bitcoin validates last brc-20 advances into OP_RETURN and in some sense ordinals or it doesn’t and so it doesn’t value LN as well. Ln relies only on specific tx template to be triggered that’s it