reply on: Pay fiat bills with sats, decentralized, P2P, no KYC | Idea for developers \ stacker news ~bitcoin

510 sats \ 1 reply \ @Reckless_Satoshi 17 Mar 2022 freebie \ parent \ on: Pay fiat bills with sats, decentralized, P2P, no KYC | Idea for developers bitcoin

Thanks a lot!

Sadly this isn't possible if banks refuse to open an account for you, because you can't pass KYC due to no government ID. Personally I would pay up to 25% fees for personal shopping/bill payment services.

Very true, not everyone has the privilege of having access to banking at all. The client base for this sort of venture seems to be sparse in any case.

Amazon gift cards can't be used for daily expenses like food and rent.

There is some ways to convert them back into cash (well someone told me! though it has a cost of course...)

BTW would you be able to add an option for longer expiry times (mainly for cash in person and cash by mail)?

Looking into this already for some time. TL;DR: bad things can happen.

The boring full explanation:

HTLCs with long expiry times are hard to route, lock a lot of liquidity (in many nodes) for long period (high cost) and can also lead to channel force closure. In addition there must be ample safety margin. Some days the bitcoin network can find 150% as many blocks as expected, and that can lead to an escrow that gets unlocked during the fiat payment step (a total disaster!).

5-6 days is the max currently (and with some safety margin that barely allows for ~24h "public order" + 3h to "provide invoice/escrow" +24h to "exchange fiat").

Advanced maker options are coming soon, so it might be possible to extend fiat exchange step up to ~2 days at will, trading off for a shorter public order duration ~2-4 hours. Probably good enough for cash in hand... But I am starting to believe the LN model might never be good enough for cash by mail. Needs more research.

0 sats \ 0 replies \ @deleted231216 17 Mar 2022

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