Nostr Web Client

The security of off-chain BTC is not uniform—counterparty risk increases in the following order: Lightning-Channel BTC → Ark BTC → Spark BTC → Liquid BTC → Cashu BTC → Custodial BTC.

The Lightning Network is a channel layer plus a routing layer. If you run your own channel, the routing layer lets you settle payments directly.

For the other five off-chain wallets, the operator shares its own Lightning channels with users, allowing them to send and receive Lightning payments.

Liquid example

• Paying — your wallet sends the same amount of L-BTC, and the operator pays the invoice through its channels.

• Receiving — the operator first receives BTC over Lightning, then sends you the equivalent L-BTC.

Liquid, Spark, and Ark can make users’ sending and receiving of Lightning payments atomic.

Lightning is the transport network—other off-chain solutions plug in as special nodes.

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Discussion

/dev/fd0 5mo ago

What is custodial BTC?

Keychat 5mo ago

BTC on a centralized exchange.

/dev/fd0 5mo ago

An anonymous cashu mint is surely riskier than a centralized exchange.

m00ninite 5mo ago

An exchange could be a cashu mint, which is strictly an upgrade. I can't imagine the Coinbases of the world deploying such privacy-first technology though. Govts would immediately slap them down.

StellarStoic 5mo ago

That's why you use the ones you trust 🤷

/dev/fd0 5mo ago

It's the same with exchanges. You use the ones you trust.

Jimmy 3mo ago

A cashu mint cannot rug pull you specifically or prevent you from moving your assets. An exchange can do that, per user basis.

BitcoinBird 4mo ago

nostr:nevent1qqsvgmfhcw20nurn0q3efpged2ezz35auwktv08cqgwky86hqpu5c5gpr9mhxue69uhhyetvv9ujuumwdae8gtnnda3kjctv9upzpwleyw4fy3sxt7yvgrran0mpenxqlululur94r9jlax0hd3q3rc7qvzqqqqqqygjmump

paxchristi 3mo ago

Listened to nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe recently and he spoke of Fedimint achieving a layer of social anonymity by setting up (guardians I believe the term was he used) who didn’t know each other in anyway whatsoever so that that can’t collude, then your free to setup your own federations anchored to this chain. I’ve most certainly not done an adequate job in relay the information , but it sounded very interesting.

Nomad 1mo ago

Mutiny Wallet was the best for privacy. It's a great loss it doesn't exist anymore..

522d5e8d... 1mo ago

Zeus is Mutiny++

Danny, the cyber guy 1mo ago

I disagree on your ordering, put spark under liquid! And split custodial lightning from non-custodial.

Keychat 1mo ago

If the Spark operator is also the previous owner of those funds, the holder faces greater counterparty risk than if they were holding Liquid BTC.

nostr:nevent1qvzqqqqqqypzpwleyw4fy3sxt7yvgrran0mpenxqlululur94r9jlax0hd3q3rc7qy2hwumn8ghj7un9d3shjtnyv9kh2uewd9hj7qgwwaehxw309ahx7uewd3hkctcqyqwc33lz9vfdmuw6dlq4pkgsuzs4lfrmzllwes5k3dnw3r36f0dfsm4gfyt

Danny, the cyber guy 1mo ago

That's what I meant, and you put spark over liquid

Danny, the cyber guy 1mo ago

Nevermind, you're right, I'm an idiot lol