Hot take - custodial Lightning is extremely important and is possibly the key to mass adoption. Maybe LSPs displace this but people will trade off fees for trust.
The market will eventually show an efficient frontier with providers along this spectrum that enable the most efficient form of that trade off while driving mass adoption along the way.
Agreed. Though my biggest long term concerns over custodial lightning trend to...
- custodial providers get regulated
- the burdens increase, and fees are commensurate
- frozen accounts happen, but the masses just wave it off.
- any circular economy has value gradually captured by the state
Combatting this people will need to treat custodials as a jumping off point, prefer custodials outside the arm of US Gov.
Ultimately need to be diligent about whom they are sending funds to and learn to self host or use an uncle jim for custodial. Reduce unaccountability by being more local