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0 sats \ 0 replies \ @Bell_curve 14 Jun \ parent \ on: Bitcoin Case Study - Buying an Ebike with Ecash bitcoin
Federated Chaumian mints offer several benefits for facilitating large Lightning transactions:
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Scalability: By having users transact within the mint using anonymous e-cash tokens instead of directly on the Lightning Network, federated mints can handle a high volume of transactions off-chain, reducing load on the Lightning Network.[1][2] This enables scaling for large payments.
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Privacy: Transactions within the mint are anonymous and unlinkable, providing better privacy than regular on-chain or Lightning transactions.[3] This is beneficial for large value transfers where privacy is desired.
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Reduced Trust: Rather than trusting a single custodian, trust is distributed across a federation of parties running the mint.[1][4] This lowers counterparty risk for large transactions.
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Interoperability: Federated mints can integrate with the Lightning Network through "Lightning Gateways", allowing users to seamlessly make and receive Lightning payments from outside the mint.[4][5]
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Reduced Fees: By batching transactions off-chain within the mint, fees for large payments can be significantly reduced compared to on-chain or per-transaction Lightning fees.[1]
So in summary, federated mints enable better scalability, privacy and trust distribution for facilitating high-value Bitcoin transfers and payments over Lightning in a seamless manner.[1][2][3][4][5]
Sources
[1] Discussing Federated Chaumian Mints On Lightning https://bitcoinmagazine.com/technical/federeated-chaumian-mints-lightning
[2] Federated Chaumian Mints on Lightning (Scaling Bitcoin To 10 ... https://www.youtube.com/watch?v=A_7-DsreUQg
[3] Federated Chaumian Mints : r/lightningnetwork - Reddit https://www.reddit.com/r/lightningnetwork/comments/qmq3pa/federated_chaumian_mints/?rdt=38228
[4] Fedi & Fedimint: Decentralised Chaumian E-cash on Bitcoin https://blog.bitfinex.com/education/fedi-fedimint-decentralised-chaumian-e-cash-on-bitcoin/
[5] What is a Fedimint https://fedimint.org/docs/GettingStarted/What-is-a-Fedimint