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202 sats \ 3 replies \ @pillar 17 Sep \ parent \ on: Cashu vs custodial Lightning bitcoin
On the can be rugged bit.
I think it's important to nuance the effect of ecash having no concept of identity.
A regular custodian, like Wallet of Satoshi, can decide to rug YOU specifically and intentionally. The cops can come over and say: "we don't like this john@doe.com, freeze him", and WoS would be able to do it.
On the other hand, while an ecash mint can rug you, it can only...
  • Rug EVERYONE (basically stop working).
  • Rug people randomly here and there. ... but they can't rug YOU specifically.
I think this changes the game theory around the custodian relationship quite a bit and has serious implications regarding how government may relate to a normal custodian vs an ecash mint.
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135 sats \ 0 replies \ @oomahq 17 Sep
What you describe doesn't sound really much different from old school bearer gold certificates, i.e. gold-backed paper money.
We know the game theory leads to EO 6102.
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10 sats \ 1 reply \ @ek 17 Sep
A mint can ask for KYC when you want to withdraw ("shotgun KYC") and then rug selectively
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0 sats \ 0 replies \ @pillar 17 Sep
That's true. But if they're going to ask that to everybody, it's pretty much the "rug EVERYONE" scenario, only with the fact that they forgive you if you surrender.
Having said that, it feels convoluted. Let's add an extra layer to our stack to avoid accounts... so we can then make accounts?
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