Oddbean new post about login | logout I'm seriously getting "Bitcoin L2" fatigue but having another #statechain implementation is a bold move from Lightspark, now we have Spark and Mercury layer pushing this idea forward https://www.spark.info/
Don't you run into the same onboarding UTXO creation issue to fund the statechain? Or do the "leaves" split off chain custody of the same UTXOs? I think I gotta read this whole thing to try to understand it.
Yes I think all layers will run into that bottleneck of pegging into another network until some sort of covenant comes along on the base layer. Like LN its all about the density of transactions and how long you remain in the ecosystem without touching the chain again
According to the documentation, you are able to onboard a UTXO and then split it into leaves offchain, i.e. on the statechain (if that’s what you’re thinking about).
Yes! That's what I was trying to understand. Cool to see this stuff starting to get more widely implemented.
Catering to the tradfi retards who want to ensure OFAC compliance?
I just briefly glanced at it but yes looks like a regulated distributed custody layer with the feeling of being non-custodial, not sure if this reduces cost versus just doing custody or whats the incentive behind it, but I do like the idea of statechains and maybe some good development and learnings comes from it