Lightning doesn't need to be fully custodial or running your own node, there is some room for a middle ground where you choose who holds your sats, and it comes in the form of hosted channels
⚡️ - https://thebitcoinmanual.com/articles/hosted-lightning-channels/
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#bitcoin #lightningnetwork
even if own node is up but big channels / routing nodes down due cloud aws ovh goog outage ur sats "remains locked" for the time ! we will have major event when happens next see ! how efficient custodial home/office LND nodes at time of other nodes outage. mainnet spend with work subject to fee n block time no matter.
Yes, that is a possible threat, that large hubs can go down like Wallet of Satoshi or Bitfinex and it would lock up a bunch of capital. But I would argue that the network will respond, in the beginning, payments will fail, but people can quickly bring online new channels, close channels to those hubs if they feel they won't come back.
While channels that are large and up, can advertise for more liquidity and offer a larger yield to get more capacity coming online and pointing to them
In fact, I would like to see this go down in practice so we can see how wrong LN really is and what we can learn from it
Agree… nothing wrong with a bit of trust.
Yeah I mean trusting someone to hold a few thousand sats is not really a big deal, and it doesn't mean you need to trust some random stranger, you can trust someone you know who can run a hosted channel. In fact its an incentive for technical people to bring more liquidity on to LN so they can support their friends, family or community and get rewarded for it
How could users check the reputation? I guess a web with all the information of all LSP with reputaton rank and liquidity, number of clients etc would be good
We don't have marketplaces for specific LSPs and hosted channels yet, but I can see places like Amboss, Lightning Pools and Lightning+ liquidity marketplaces allowing for people to post liquidity ads and source customers and wallets could tap into these APIs and offer it to customers.
Wallets could set rules on certain requirements to get access to their userbase or people could bypass and pick their own
At least that's how I see it forming, but nothing concrete yet
