delvingbitcoin
Can Game Theory Secure Scaling?
Posted on: April 13, 2024 17:18 UTC
The recent conversation around custodial lightning wallets highlights a growing concern within the cryptocurrency community regarding cost-efficiency and sovereignty.
The preference for custodial solutions is primarily driven by their lower costs, but this comes at the expense of losing control over one's digital assets. However, it's argued that self-custody can also be economically viable without sacrificing speed or convenience. This discussion introduces a novel proposal known as "Last Mile," aimed at addressing these issues.
"Last Mile" proposes leveraging traditional Bitcoin transactions in a unique manner where they are not broadcasted until a dispute arises. This method is designed to promote honest transactions by establishing a system where the cost of dishonesty outweighs its benefits. The essence of this approach is to make self-custody appealing by ensuring it is both affordable and fast, counteracting the current trend towards custodial services.
Further details and the foundational thinking behind the "Last Mile" concept are shared through a document available on GitHub, which can be found here. While the proposal acknowledges its own potential naivety, it serves as a call to action for the wider community to engage, critique, and refine the idea. The ultimate goal is to enhance the proposal with collective feedback, driving towards a solution that upholds the principles of autonomy and efficiency in digital transactions.