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 R2 specifically. I chose R2 on account of the pricing model that charges only for storage and not data egress (bandwidth). That's actually a fairly big deal because with other options (e.g. S3) you're always at risk of getting a huge surprise bill if some hosted data gets really popular, and this forces all the services built on it to host third-party data to be post-pay with no guarantees to the customer about how much they will be charged.

By replicating R2's pricing structure, Satellite CDN is able to be flat-rate pre-pay, and therefore a good fit for lightning.

If you're concerned about censorship, that's what NIP-94 is for. For every file uploaded, Satellite essentially creates a torrent for it, and returns these params to the client. So if Cloudflare ever pulls the plug there will, in principle, be recourse to self hosting. Also, the url path of every file on the CDN is just the SHA256 hash, so to deal with the problem of dead links in the long term, clients could just parse out the hash from dead links and serve the same data from a different host. 
 If you are thinking about it, chances are @Stuart Bowman has already considered it, studied it, and arrived to the best possible conclusion.

nostr:nevent1qqszajprday8wfh0n72jfplg3vqr6h3cmrfrsxj7ufrxc38lsguypgspp4mhxue69uhkummn9ekx7mqzyrlj05quk8jkldv9sqcxc7a8dwcr00epr3d4w0zkunnse2zcw4d0ql3tfy9 
 Well that is an instant follow then. 
 I'm pleased to see you recognize that about Stuart Bowman. This is quite the endorsement of his prowess. You two are quite the pair of visionaries and in your words "a beast". I can't thank you enough for all your hard work. I'm nothing more than an end user and you both are making my experience using NOSTR enjoyable. This is why I zap +++ you both. IDK if you are going to Nostrasia, but i suspect you'll be there. Please make it a point to get to know Stuart, you'll be amazed that he's every inch as smart and talented as the best of them. All him about his "constellation". You may never have seen it when Satellite was powered for bit torrent and not NOSTR. You both have been prolific with your coding and development of this space. IDM'd you last spring and told you to keep your eyes open for him and his work. I think you'll be impressed by him personally and professionally. He's presenting at Nostrasia, so i hope you get to hear him speak. I know this sounds an awful lot like me being a fanboy or a proud poppa, maybe that's true, but I'm not FOS about this. It's scary to think about what could happen if you two put your heads together. Really scary... I sure hope you see this. 
 Thanks, good overview. In the end is your call to leverage surveillance economy services for freedom tech. As long as there is redundancy and heterogenous architectures in the event of something bad. But do feel there is a need for people to understand the underlying networks their data is stored on or transverses. Obviously most people do not care since they still use Google, Amazon, Meta, and other services. I have been told the pricing rationale for using Cloudflare by others on nostr. To me is still not worth it to support a company that subverts the base protocols of the Internet in so many ways. Simply because they undercut their competition and make it "easy" for devs. 

I commend your reply since a lot of devs just want to not discuss how the soup is made as long ad it tastes good. 😉🤙🍲 
 The eternal question of whether the perfect is the enemy of the good