100 sats \ 2 replies \ @RedRadish688 30 May \ on: Summarizing my thoughts on ecash bitcoin
As others mentioned, I think ecash should be treated like a custodial wallet and as such can serve some specific purposes, e.g. loading up small amounts for a quick use or onboarding beginners.
I also see it serving as custodial mixing service if it is accountless.
The good point is, that since the ui wallets are already there, open source, custodians have a lower entry barrier of just setting up a mint and don't need to implement their own ui. This could lead to a more decentralized set of many smaller custodians.
That being said, I agree that this is not the end solution and that for higher amounts and long term storage only self custody can work.
Why are custodial solutions necessary at all?
Why isn't Zeus or Phoenix sufficient?
reply
Fees can be a big reason for smaller amounts.
Simplicity, e.g. when you need to load up sats for a day trip without understanding the intricacies of each self custody wallet.
Usually access to a wider range of feautures, e.g. when some services only send payments to an lnaddress, I can quickly fire up a custodial wallet to receive it.
Also ease of onboarding in general. Lightning has a very steep learning curve, so I find good to have something I can start using right away and expand my skillset over time.
reply