105 sats \ 7 replies \ @petertodd 5 Feb 2023 \ parent \ on: Muun wallet is bloating the chain with submarine swaps bitcoin
My dream is for Wallet of Satoshi and Phoenix to merge: custodial until you have enough money to make it worthwhile to open a channel.
This could be implemented as an entirely automatic process, with users able to continue to send and receive the whole time. Unfortunately Phoenix has already said they while they would like to have this model, they aren't comfortable due to the fact that they'd be a custodian, and in the EU, that has a lot of legal baggage.
My dream is for Wallet of Satoshi and Phoenix to merge: custodial until you have enough money to make it worthwhile to open a channel.
Yes, exactly.
This is the plan I have coming for Blixt.
With the 0conf channel support in lnd (and other implementations), it's possible to provide a "custodial" channel by just not ever broadcasting the channel opening transaction.
This is quite neat, because there's no need to do a fully custodial solution (BlueWallet, WoS), just utilize LN normal channels, but make it trusted.
This way people can get onboarded Blixt custodially.
I cannot open a channel for small amount like 1000 sats, right, and I don't think it matters if it's custodial when it's just a small amount.
But eventually when the user has proven they actually use the wallet, it's reasonable to let them have a real channel.
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Awesome!
FWIW, Blixt is the main Lightning wallet I use. Though I use it for a totally different reason: I exclusively open private Lightning channels to my own Lightning node. I hope you are able to maintain this functionality. :)
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That's great to hear!
Yes, I plan to maintain all power user stuff (and keep improving it).
My understanding is that it's somewhat popular for users to connect to their own bitcoin and lightning nodes.
Though the LSP features will ofc likely only work together with Blixt Node (or you'll have to self-host the LSP software (Dunder LSP, Lightning Box)).
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I gotta try this
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My dream is for Wallet of Satoshi and Phoenix to merge: custodial until you have enough money to make it worthwhile to open a channel.
You described OBW with hosted channels.
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Phoenix is already a custodian. I doubt what they have is always going to fly under the radar. Create an on chain address on Phoenix and you'll see that it comes directly from their servers.
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There's a good argument that the time scale involved in getting a new channel isn't really a custodial arrangement. That's akin to claiming a money exchange booth is also a custodian because they physically have your money for a minute or two while they count out the foreign currency they're about to give you.
Very different circumstances to something like Wallet of Satoshi, who has had full control of the $5 I've had on my WoS wallet for the last few months.
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