Tuesday, June 29th 2021 - Issue #1022

Chaumian mints could improve Lightning Network wallets

Here's a great blogpost about Chaumian mints and how they may be implemented in Lightning Network custodial wallets to improve privacy, usability, security and scalability. As we discuss often in this dark corner of the Internet, there is a spectrum of tradeoffs that bitcoin users make when interacting with different types of bitcoin-related software. The spectrum ranges from fully custodial (think Cash App) to fully non-custodial and user controlled (think self-managed full node + LND/c-lighting/Eclair). Depending on the technical competency of any particular user they will opt to use solutions that give them the most comfort.

For some this is, interacting with a wallet that "just works" with minimal lift and not much worry about how centralized it may be. For others, this is having full control over the software in question so that they can have peace of mind that their sats cannot be prevented from moving. The aim of any wallet provider should be to reduce third party dependencies and access to data relating to an individual's bitcoin usage by as much as possible while providing a wallet experience that is on par with traditional financial apps that many are accustom to using. This is no trivial task. However, there are schemes that can be leveraged to bring these types of products to market. Chaumian mints seem like a very creative and robust scheme that can be leveraged to create wallets that are easy to use, scalable, and sufficiently private considering the custodial tradeoff being made.

Being able to create back end wallet software that allows users to hide in crowds (preserve privacy), avoid having to deal with channel management on the go, and attain an increased amount of security of funds by leveraging a federated model would be a massive boon for non-technical Lightning Network users. As of right now, I do not believe there are any Chaumian mint schemes in the wild. This is an idea that is being resurfaced after years of failed attempts leveraging the centralized digital currencies that preceded Bitcoin. There is software that needs to be written and implemented before we see this in the wild. I am writing this rag today to draw attention to this potential massive improvement to custodial Lightning wallets. What do you freaks think? Are you excited about the prospect of Chaumian mints being applied to Lightning Network wallets?

Final thought...

Back under 190 for the first time in quite some time.

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Marty's Ƀent - June 29th, 2021 - Issue #1022

Chaumian mints could improve Lightning Network wallets

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