Author: Casey Rodarmor 2021-06-30 01:05:41
Published on: 2021-06-30T01:05:41+00:00
In a discussion about the forces that act on banks, it was argued that banks have historically acted as federations and taken custody of money to manage for their clients. Any system that is a federation and takes custody of user money will face social, political, and economic forces that banks have faced in the past. However, it was also suggested that banks operating on top of Bitcoin may be subject to different forces due to lack of regulation and increased competition. Federated chaumian banks that interface exclusively with the Bitcoin and Lightning networks could hopefully evade regulators and serve a global audience without being tied to a particular country or region. Additionally, the node management problem can be solved by something similar to CLBOSS software. While projects like CLBOSS are useful, it may not be possible for management software to fully abstract over things like high fees, uptime requirements, and unexpected fund unavailability due to channel closure.
Updated on: 2023-06-03T04:21:59.196480+00:00