Can someone explain to me exactly what is non-custodial Lightning?
#asknostr
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Side steps trick question 🤣🤣🤣
Zues is the perfect one to explain. So when you set up a wallet on Zeus, it'll give you 24 words. That's your seed, phrase. Now when you open a channel, you're on the lightning network. If anything happens to your channel, it gets closed and the sats get sent to your on chain Bitcoin wallet, but you will have to wait about a week. That is non custodial, lightning.
In custodial lightning one trusts a service provider with ones bitcoin.
In non-custodial lightning one runs a bitcoin node and locks bitcoin in an online hot wallet with a set of multisig smart contract channels with strangers.
In the former you risk being rugged.
In the latter you have built a giant fortress of footguns that must be carefully maintained.
There's a lot more than just those things that make them different, but...
Yeah, I do the latter to provide a service to the former. I just don’t see how a casual user can be non-custodial.
They can't be. Not without an enormous amount of effort and risk.
Something I've been saying for years is: its inevitable that Bitcoin banks emerge. There's no other way it can work. It's just a matter of how good is the bank.
And as you point out the ordinary user is going to have a terrible time trying to manage something as complex as a lightning node or for that matter a. Ecash mint or any other way to move Bitcoin off chain.
Interestingly, in my view, lightning is not a service provider(bank), but a protocol. If you run your own node, you are being basically your own service provider, your own bank. And early on, that's what we thought lightning was going to be. But what it really has become is a communications protocol between larger entities.
https://bitcointalk.org/index.php?topic=178336.msg65450895#msg65450895
I am trying to make life as simple as possible for the user: security of their funds and records.
A noble cause 🫡
You are combining multiple protocols in an extraordinarily powerful way and modularly enough that certain aspects of the system can be improved/tweaked later if dedired. I think I can see your #getsafebox project existing with a federated custodian model for example.
Big fan of what you're doing.
Thanks! Just focusing on what the tech can do, versus getting hung up in the ideology. Particularly excited with what NFC can unlock!
Can be https://www.spark.money/, that is another Bitcoin L2 layer, but allows to self custodial but allow receive and send lightning too.
It’s really not too hard with umbrel/start os. You just run a lightning node, transfer funds to a Lightning wallet, open channels, and that’s it. I use Alby hub on top. I just zapped you sats from my own node.