Subnostr

most of the 21m on-chain bitcoins will be used to provide liquidity (time value of money) for higher layers for a fee - translated into miners' fee. LN, Ark style coin-pools, all based on parcellating big chunks of bitcoin and selling their use to end-users in a non-custodial way

a good-enough covenants based coin-pool tradeoff can compress 1000s of "optional UTXOs" into one on-chain UTXO, similar to the way LN is compressing 1000s of txns into one on-chain txn

LN and ark style coin-pools are not competing, but are complementary. one is compressing the amount of times you can transact, the other compresses the amount of people who can hold a non-custodial movable balance - movable off-chain

LN solved bitcoin the way planes solved Fedex - but the last mile still remained a bottleneck. no matter how many planes you have, you still need to get the delivery to someone's home. covenants can solve LNs last mile problem

Reply to this note

Please Login to reply.

Discussion

Gildong.Hong 2y ago

Would you please explain what the last mile problem is?

I think you arrange my unarraged thought on scalability of Bitcoin.

Thank you.

nostr:note1hmn7a6k3wa7qxcc6klmv68e6xc7rr4t068ljhnmljnpuyqslhk5s2x7zja

Abstract Equilibrium 2y ago

Whether the packages traveled by air or by land or by teleportation (🤣), you still need enough drivers to deliver them to the door at the end. No amount of efficiency or innovation can change this fact. Except maybe teleportation.

Gildong.Hong 2y ago

oh, that was a generic term. Thank you🤙

UNLICENSED MONEY TRANSMITTER 2y ago

it comes from all kinds of infrastructure, but generic enough

UNLICENSED MONEY TRANSMITTER 2y ago

the last mile problem is how you move on-chain coins into off-chain and back. even if LN works great, with liquidity providers, reliable paths, watch-towers, and splicing, as an end-user you still need to move between the layers every now and then. you still need to splice in/out to top your account up or down and that's not something LN can solve ("inbound liquidity" is the common name for this limit)

theoretically only 500,000 splicings can be done every day and that's still not enough for 1 billion people, let alone 8

with covenant an entire new paradigm of optional UTXOs can be enabled through coordinators who control the on-chain funds, where in to optimistic scenario you don't need the chain to move between these off-chain "virtual" UTXOs while pay and getting paid

Gildong.Hong 2y ago

Thank you for expaining.

These days, as I'm one of a programmer, I'm trying to read Bitcoin core codebase. and my ultimate goal is contributing to L2 scalability solution like LN or Ark.

I'm a fulltime fw developer in non-Bitcoin company, so I could be little bit slow to follow Bitcoin dev issues. Anyway, I'm trying.

Are you a developer? Do you have any recommendation for what should I keep attention with?