Yes you can unilaterally exit if denial of service is made against you on lightspark’s Spark entity. Further more, theoretically anyone can spin up and be a Spark Entity with their own Spark Operator quorum and specifically orientate themselves as a non-kyc operation. There’s however always the genuine risk of collision leaving you without coin.
But that’s much less likely if there are more than 1 Spark Entities plus more than 1 Spark service providers.
Currently there is 1 SE lightspark , 2 Spark Operators in that Entity (lighspark and flasnet (apparently related to lightspark) and 1 ssp (lightspark) but breeze is meant to become one I believe.
It’s the positioning of lightspark (enterprise interoperability with the banking system with UMA) that some people are having the issue with, not so much the protocol itself (from what I gather)
LSP question is valid and I’d like to know more about it from @ZEUS however again I’d imaging it’s more the positioning here, they are going in the other direction, so the likelyhood of KYC denial of service would be dramatically reduce.
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Spark server code isn't public. You have to go through their company to become an operator.
RE LSP privacy, if you have client-side payment routing (which ZEUS has) you don't know where your customers are making payments to and from. It's night and day.
The privacy side of the issue is valid for sure, but the trust model in terme'of custody is not so bad from what I understand, if there are enough Spark Operator involved at least.
Any LSP could also try to cheat as they perfectly know that no is running a watch tower so...
The most important issue I see is about privacy indeed, still but I can't unsee Spark as a good thing compared to full custody that many people used through WOS until now. I prefer to see the glass half full.
But we can imagine informal Spark entities runned by federations "Liquid like", with blinded signatures on top of spark. That would be cashu on steroids actually.
Best case scenario is obviously Ark + CTV + chaumian ecash.