Oddbean new post about login | logout Being private AND offchain is definitely ideal for privacy. That is true. Monero gets L2s with FCMP++ in a year or so. "There is no reason to use a different monetary token & deal with exchange costs & risks & lack of acceptance." What? You deal with exchange costs and risks in lightning, liquid, and ecash too. You also deal with the additional cost of force closure fees in lightning, and rug risk with ecash. Liquid rug is also possible too just much less likely (privacy sucks though. doesn't hide sender/receiver and abysmal anon set). https://boltz.exchange/
Why use Monero's future L2 if blocksize is dynamic & can adjust to any demand? There is no exchange risk when swapping between BTC tokens. Liquid to LN swaps happen in the background when you make a txn from a wallet. So if someone doesn't support Liquid they get a LN payment instead. There will be similar bridges to everything else & LN forced closes will mostly be LSP problems, not average consumer level issues.
Same reasons you use an L2 on Bitcoin. You would use L2s on Monero for instant and much cheaper payments. Offchain txs can also be better for privacy especially when combined with an encrypted base layer. There doesn't have to be exchange risk with Monero either. There are several atomic swaps out there between BTC and XMR like UnstoppableSwap, BasicSwapDEX, and soon Serai if that is what you meant. You can have wallets that do the exact same thing in the background. Cake and Stack already do this. Ok sure, but you're only getting around force closes this way by taking on intermediaries like LSPs meaning you're asking permission to transact and introducing privacy implications.