Author: ZmnSCPxj 2020-09-22 01:00:43
Published on: 2020-09-22T01:00:43+00:00
In a technical discussion on non-custodiality, ZmnSCPxj argues that trust minimization is the entire point of non-custodiality, along with legal and regulatory implications. The discussion also touches on the risks involved in non-custodial solutions and how they differ from other solutions. ZmnSCPxj suggests avoiding the term "custodial" and instead focusing on technical risks. They argue that a service is non-custodial if it performs the protocol as specified, but the risk of theft remains due to corrupted hardware. The solution proposed is inferior to older solutions such as TumbleBit or Wasabi, which cannot lead to outright theft of coins even with cooperation of previous participants. Multiple mixing rounds under this solution have increased exposure to the risk of theft and hence withdrawing after every round would be better risk-wise.
Updated on: 2023-06-14T15:18:22.552744+00:00