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Both! VLS encapsulates the minimum amount of state required to maintain custody, so it's useful for both high end operations using a HSM and individuals using a personal signing device
To add to what Ken said, VLS is focused on building a library and reference implementation which can be used by LN companies and developers to build into their solutions. VLS will be capable of running on cheap personal signing devices that plebs can use, but if the pleb is not a dev the solution they use will need to be built by one of these LN companies/devs
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