Cos it’s still custodial, just much less bad type of custodial. You’re not transacting sats, but sats IOUs.
Conceptually just like fiat started out, which worked ok until the rugpulls.
That said, ...
there is custodial that is:
- kyc/aml ridden unsafe
- permissioned account system
- orwellian surveillance nightmare
- debased via fractional reserve
- gatekept and metered walled garden
and there is custodial ecash:
- private
- either fungible or programmable
- accountless and individually permissionless
- auditable supply (fingers crossed)
- globally interconnected via ln
both can rug you tho. but it's pretty clear which one is the winner.
- kyc/aml ridden unsafe
- permissioned account system
- orwellian surveillance nightmare
- debased via fractional reserve
- gatekept and metered walled garden
and there is custodial ecash:
- private
- either fungible or programmable
- accountless and individually permissionless
- auditable supply (fingers crossed)
- globally interconnected via ln
both can rug you tho. but it's pretty clear which one is the winner.
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