26 sats \ 4 replies \ @om 11 Sep 2022 \ on: Standard Sats against Fedimint Hype bitcoin
Why he needs an exchange account? That's simple, for hedging bitcoins he receives into Fiat Channels of his brothers, sisters, and nephews.
That is far from simple. The only simple way to "hedge" the received bitcoins is to immediately sell them for fiat. That way Uncle Jim's family has claim on Uncle Jim's claim on the exchange-owned fiat. In this scenario the smartest relatives of Uncle Jim will figure out that they can just sign up for the exchange themselves.
But you're doing something much more complicated.
All hype around Fedimint ignores this simple problem: custodians will need to hedge their market risk if they mint "stable" e-cash.
Fedimint doesn't mint stablecoins at all, at least for now. I'd imagine Taro will be the first.
On the other hand, if uncle Jim is alone in the village, with whom he will manage to form the Federation?
Cities will most likely mint Fedi coinage first and then villagers will adopt them. But even a one-man Fedimint is a privacy-respecting Chaumian mint. How's Standard Sats for privacy?
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30 sats \ 3 replies \ @notgeld OP 11 Sep 2022
The only simple way to "hedge" the received bitcoins is to immediately sell them for fiat.
Or buying perpetuals.
How's Standard Sats for privacy?
The same or better because there is no token. User may create single-use identities for channels and invoices always signed with random key, Tor is an option. And yes, these all available now for trying.
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25 sats \ 2 replies \ @notgeld OP 11 Sep 2022
Basically, users could exchange hosted/fiat channels states and private keys with single use seals and it might be working as e-cash.
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25 sats \ 1 reply \ @om 11 Sep 2022
OK, screw fiat, I want more of this. Is it like Fedimint but with LN backing? What happens to users' e-cash if the channel closes?
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35 sats \ 0 replies \ @notgeld OP 11 Sep 2022
Honest operator redeems balance in sats onchain.
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