that is opening the door of the fractional reserve in bitcoin. It is to repeat the same vices of the inherited system.
Discussion
Could you expand a bit more? Followed 🫡 #plebchain
The federated are given a kind of btc paper called fm-sats.
When someone from the federation wants to pay a merchant outside of it, what he does is "sell" the corresponding amount of fm-sats, and the federation sends the merchant real sats.
It is impossible to control that the federations do not issue more fm-sats than the collateral they have, then secondary markets for fm-sats are organized and thus we already have much more paper sats than real sats.
Exactly what the banks did in the days of the gold standard.
Wow, definitely need to keep an eye on this then. Didn’t know about the creation of “fm-sats” aka fake bitcoin. Thanks for explaining, about to zap ⚡️
This is certainly true, but the reason fedimint is such a major upgrade from the current system is the majority of the signing quorum has to be involved to issue more fm-sats then sats in reserve. So it is very much like Gold banking from the 18th century. As long as you trust the bank (mint) then you can leave your money there. One of the big differences from the gold system banking and fedimint is money can be zapped out of mints at the speed of light (with the permission of the majority of the quorum). This doesn’t reduce the trust model, but it may mean these rehypothication schemes get snuffed out faster. I am assuming that money moves in and out of different fedimints as people find better UX or a more trusted group. Since money flows quicker, there is less time to build up considerable rehypothication.
But who knows, I may be wrong.
#plebchain #bitcoin
Thanks for adding to the conversation! Just zapped you. Keep adding good content.
Followed
#plebchain #zap #spraysats
Rather, you have sent me an invoice so that I can zapp you... jajaja
lnbc1p37arnypp5d0zwq0fkvapky8av3xmvm09d508y7x7dfa2ygd09u3qejaqmpqgqdqu2askcmr9wssx7e3q2dshgmmndp5scqzpgxqyz5vqsp55eu6r9a6vcr4nyeh63f3wrkzpkru5dhuygh3xzmrh4936y50xcvq9qyyssqeq2vhhsv4sd5cjhxgma69dsan4wy3lnky32hmwvute2n5eyg70kx50q77j628ljh6m7qr78szpauqaze93v27dk5k52g39cze56vfmqqnrd2vd
Boom
Do you want me to pay you? hahaha
Only if you want to, just responding with an invoice to your last post.
Zaps shooting everywhere
I thought zapps were given, not requested... hahahahaha
*Uno reverse card* 🔄
They are haha, I’ll zap you again for the trouble with the invoice🫡
😅😅😅😅😅😅😅 once again you have sent me an invoice so that I can pay you...
😂
Maybe drop an invoice yourself?
😂😂😂😂😂
I’m so lost 😂 more sats coming your way
😂😂 Don't worry, what you are doing is sending an invoice to me so that I can pay you... you are not sending me a payment.
Double check, sats are leaving my wallet.
Well, they don't go to mine, hahahaha, I paid you the one for 10 sats, so you can see that they are bills for me to pay you..
Where the heck are those zaps zapping to haha, double check the LNURL attached to your account
Everything is correct, I just sent 500sats to my LNURL account and they have arrived without a problem...
Followed 🫡 #Plebchain