Author: ZmnSCPxj 2020-09-21 01:14:29
Published on: 2020-09-21T01:14:29+00:00
The conversation is about a proposed protocol called 'statecoin'. A 'statecoin' is a UTXO that can be transferred off-chain and is a 2-of-2 between the owner and SE (the trusted signing server). The 'statecoin address' changes with each new owner and is used to authenticate owners to the SE. It acts as proof of ownership on the statechain and is not related to the on-chain address/pubkey, which does not change. The SE must be trusted to not actively defraud users, but it is strictly non-custodial if it can be trusted. The main advantage of this scheme is that off-chain SE transactions are near instant and orders of magnitude cheaper than on-chain. However, there is an objection against custodiality: someone else can prevent you from spending the coin. If we have to trust the SE to not steal the funds, then it is not really non-custodial, when after a swap, a corrupted SE can take control of the coin and prevent us from spending it as we wish. In comparison, the proposed investment aggregation method requires trust in the business owners who we are investing in, but it does not require trust in the aggregator due to the n-of-n, which cannot be reconstructed by the aggregator and all other participants without us.
Updated on: 2023-06-14T15:18:12.012081+00:00