*The bank, reconstituted as a node, resumes its role not by monopolizing trust but by monopolizing liquidity and convenience* View quoted note β†’
*Bitcoin’s first layer resolved the problem of trust. Lightning’s second layer must now resolve the problem of convenience. If self-custody and peer operation remain labor-intensive, users will gravitate toward intermediated solutions, regardless of ideological cost. Thus, the survival of financial sovereignty depends not on theoretical purity but on practical usability. This dynamic redefines the locus of contestation. The battle is no longer between decentralization and centralization in abstract terms, but between custodial ease and sovereign simplicity. The institutions adopting Lightning are not violating its open protocol; they are exploiting its optional complexity. Their success depends on the inertia of users who prefer managed experiences over self-determination.* View quoted note β†’
*The trajectory of the Lightning Network illustrates a recurring phenomenon in technological history: the co-option of disruptive architectures by the very systems they were designed to displace. When sovereignty imposes operational friction, institutions monetize its reduction. The result is not a technical failure but a social inversion.* View quoted note β†’
*Custodial Lightning effectively reintroduces the logic of financial intermediation under a new technological guise, offering comfort and simplicity while reducing individual agency. Non-custodial Lightning embodies the radical intent of the network: to eliminate intermediaries entirely by substituting verifiable computation for trust* View quoted note β†’
In non-custodial systems, *The trade-off lies in operational responsibility: users must maintain node uptime, monitor watchtowers to guard against fraudulent channel states, and ensure sufficient liquidity for effective routing.* View quoted note β†’
*If an LSP declines to open or rebalance channels, the user’s node becomes effectively isolated. Control over liquidity translates into control over usability. The model thus shifts from key custody to liquidity custodyβ€”a subtler, but equally consequential, vector of dependency.* View quoted note β†’
*If a small number of high-capacity custodial nodes can observe or restrict routing, they become functional analogues of settlement banks* View quoted note β†’
*It would be nice to own some gold when it goes through boom times like 2025 but you have to get used to not always owning the most popular asset each year* Why I Don't Own Any Gold - A Wealth of Common Sense
A Wealth of Common Sense
Why I Don't Own Any Gold - A Wealth of Common Sense
Gold is on fire. The yellow metal is up more than 60% this year. It’s risen nearly 30% in the last 3 months alone. It’s hard to get a n...
*The fact that we have a functioning tax system is proof that we have a functioning anti-inflation system in the UK* 🫠 View quoted note β†’
Bitcoin *connects you with optimistic humans* View quoted note β†’