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42 sats \ 1 reply \ @tolot 22 May \ on: Is Layer 2 Bitcoin A Shitcoin? bitcoin_beginners
Coinbase, Liquid, Fedimints are not Layer 2, since you can exit unilaterally from none of those.
LN is a Layer2, even though in some some specific situations the unilateral exit is not economically reasonable. Since LN it's a L2 solution, transaction in LN are simply bitcoin transactions, therefore no shitcoins here.
It's simple as that.
PS. I'm not saying that Fedimints or Liquid are bad (although Coinbase is)...I'm simply advocating for the following reasoning: if we admit custodial solutions in the category of "scaling solutions", then we're trying to reinvent the wheel because PostreSQL does a perfect job in that regards. We shall be more cautious in what we consider L2, although custodial-ish techniques like ecash seem useful and very very interesting.
LN is a Layer2, even though in some some specific situations the unilateral exit is not economically reasonable.
The important thing with LN is that in the situations where unilateral exit is not economical your counterparty can't exploit the situation to make money. They'll lose more money on fees than what they steal.
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