729 sats \ 5 replies \ @kr 11 Jan \ on: ETFs are just a custodial layer 2 bitcoin
I like Ryan Gentry’s framing for what is a L2 on Bitcoin
It’s only a L2 if:
  1. you can unilaterally withdraw your BTC back to a main chain address you control
  2. the tx occurring within the L2 are valid main chain txs
https://twitter.com/RyanTheGentry/status/1745450046316019865
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468 sats \ 3 replies \ @kepford OP 11 Jan
Yeah, that makes sense. I think @Lux and you have changed my mind. Its semantics but I like semantics. Semantics are a part of what makes language and language helps us understand the world.
Thanks for your contribution.
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131 sats \ 2 replies \ @elvismercury 12 Jan
It's fine to change your mind, but you were getting at something interesting.
Whether we call it an L2 or not, there's a sense in which this asset can move around in a way that's off the blockchain, which is L2-proximate in an interesting way, the same way that opendime is kind of an L2. (I had used a tilde but looks like SN stole that for territories. Someone should make ~L2, that would be an interesting territory for sure.)
There's going to be a shit-ton of these quasi-L2s before all is said and done, and if there's not, it will be bc btc is irrelevant and nobody cares about it anymore. Otherwise, forming these abstractions, with different benefits and tradeoffs, is the most human thing in the world.
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10 sats \ 0 replies \ @030a29f333 12 Jan
"Custodial Opendime" is a pretty good description honestly
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21 sats \ 0 replies \ @kepford OP 12 Jan
Yeah, I think it is semantics around what I would call the ETF. I haven't changed my mind on the ETF itself. It sounds like we agree on the ETF. Things like this are just gonna happen as BTC becomes more desired.
What I'm changing my mind on is my terminology. Language is subjective. Misunderstanding is often created by people ignoring this fact. If you want to communicate and understand others effectively you have to define terms and understand what someone else means by the words they use. Often people think they disagree when they do not and the inverse.
I need to think about this more. I may write my thoughts on this tomorrow. We will see.
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0 sats \ 0 replies \ @SpaceHodler 12 Jan
Does LN even meet 2.? Sending sats over a channel is not a main chain tx, the only main chain txs are channel openings and closures.
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