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ok go away fiat lover
Mr Darthcoin, we live in a Fiat-run world while trying to make it a Bitcoin-run world. Imagine where businesses use Bitcoin as the underlying asset transferred when they make Fiat transactions. This is what the Fiat channel proposes.
It indirectly sews Bitcoin into the architecture of traditional finance, then suddenly everyone prefers to measure value directly in Sats and not in Fiat because over time less sats is exchanged for the same quantity of fiat.
Volatility against the prevalent unit of account (fiat) is an inherent feature of Bitcoin as a free market money. It will wane and reduce over time with more adoption and daily application in trade.
Using Bitcoin directly for trade and for value exchange, especially in a fiat-run world, will often require re-conversion into Fiat which ultimately renders Bitcoin as just a medium of storage of value, a value measured in fiat, not in Sats.
But having Bitcoin as the base asset for transferring fiat value means more people use Bitcoin, albeit indirectly making more people learn about the Lightning network, ask more questions, and hence learn about opting out.
Carrefour could hardly ever pay its employees with Bitcoin because it's a Fiat company. Even if they want to do that, they'd have to first go through the stress of buying Bitcoins with Fiat and then paying their employees.
The easier way we scrap all that is through Hosted/Fiat Lightning channels.
With that, Carrefour can directly accept Bitcoin payments while retaining Fiat stability, pay their workers with Sats without volatility concerns, and can easily move any profits from Bitcoin sales to on-chain if they so wish.
The easier way to transfer the Fiat-run world onto Bitcoin is to make Bitcoin the base asset on which the Fiat value is moved. Fiat channel is the closest attempt to achieving that.
And nobody needs to depend on any particular entity since anyone can run a Lightning node and be their own Host.