Thread - Nostr Hypermedia

Moon MichaelYouKnow@BitcoinNostr.com 2 weeks ago

L2 is only verifiably anchored to L1 if you’re doing self-custodial lightning and most people are not. As to yet Lightning scales best custodial (as do other proposal like ecash and Fedimints), as such there will also be some risk (and eventually quite like the appearance) of fake L2+ sats. In this case it’s only the risk of unilateral exit down the layers back towards the mainchain that acts as a constraining function on inflationary shadow dynamics in a layered Bitcoin monetary standard. Still much better than what we have today tho. No perfect solutions, only tradeoffs. #plebchain

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Replies (2)

₿k karki@primal.net 2 weeks ago

I definitely agree with you; there are tradeoffs at higher level But I want to remind you that all disparate higher level solutions talk to each other via lightning network which itself is anchored to L1. So, inter-custodians transaction are verifiable, and if disputed will fall back to L1.

Standard Sats 6 days ago

> In this case, it’s only the risk of unilateral exit down the layers back towards the mainchain that acts as a constraining function on inflationary shadow dynamics in a layered Bitcoin monetary standard. This is why whatever is built on L2 would hardly ever be inflationary, because at the end of the day, reconciliation happens on L1, where you can never game the rules. The major risk associated with L2s, especially when used in custodial mode, is "maliciousness or theft by the custodian."