101 sats \ 1 reply \ @muteness11 25 Dec 2022 \ on: Proposal: create Private LSP (Liquidity Service Providers) for businesses bitcoin
Thanks for sharing this, really insightful and informative
I've done some research on this and the findings were similar to yours however I would take a different view. there are two types of merchants, Bitcoiners and non-Bitcoiners but are looking for new revenue streams/new customers so dont mind adding LN payments (majority are here and ill focus on this one).
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Sales cycle: sometimes orange pilling them takes more time (not efficient)
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Education: LN companies often do the (how-to) but there are challenges with incentives and churn. managers and staff may not be encouraged to mention to clients & employee turn-over rate leads to lost knowledge
Consultancy: Merchants dont want to manage LN stuff (liquidity, channels etc...) and they do not see he need to hire a person to do that nor do they see a need to have a consultant to manage it for them.
The above is based on observation coming from IBEX and Galoy in particular
simply they want to have something simple and efficient and that could be something that BREEZE is working on which is managing everything behind the scene OR what galoy has with its stablesats project (tackling volatility for merchants)
Both arent great solutions but that is the best I could think of
Yes, indeed I saw quite a lot merchants that don't want to deal with running nodes, liquidity etc.
Even if you explain them that exactly for that Bitcoin was created (skip the intermediaries), they are still not focused on being financial sovereign, as you said are more interested into just taking another form of payment, like another paypal.
It takes time until we will change the fiat mentality, but yea, slowly with good education maybe we will get through.
I am still inclined to see more LSP offering simple solutions for merchants and in the same way they can keep some kind of sovereignty.
That's why I posted this here, I hope that more other smart guys will create such services: offer direct liquidity to merchant nodes, through a simple "pipe".
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