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Banks services like vs the real deal.

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Written by   93
1 month ago

I have a few satoshis in my bank account Wallet of Satoshi, and it is a bank because I don't control my private keys and I am not using the real Bitcoin either when I am using those services either. The reason why I use those services is that I like to collect some rewards from other apps that require a service like that and that once I am done I get to move my funds to where I actually control my keys and it becomes my real money as well.

While the funds sit on the Wallet of Satoshi account they are not even Bitcoin it is a token that is equal to 1:1 to Bitcoin BTC. And I have no way of knowing if those satoshis actually represent that because Wallet of Satoshi actually whole the ledger history of the transactions made so I have to trust that they are actually using Bitcoin second layer and not just crediting satoshis to my account which will be equal to printing Bitcoin.

It is only until I move my funds from the wallet to another destination when I finally know that my satoshis were actually real, as long as balances only sit within the app there is no way of knowing that, and that is why I never put more than $10 into Wallet of Satoshi because I know I am forced to trust them and I can't verify because I can't see their private ledger. If you move funds from a WoS account into another there is no way to know if you are getting the actual second layer token or just a number on your account. And that is what you have to deal with when using a custodial account.

The reason I use WoS is that I like to convert my Google Rewards into Bitcoin Cash so in order to do just that I need to first complete the Google Rewards survey get a payment of a few cents and collect at least $1 in Google credits, exchange those credits for Bitcoin Rewards and once I get to withdraw those funds I exchanged those LN satoshis into Bitcoin Cash or any other asset using LN exchanges like fixed float exchange.

I would love to collect Bitcoin but for such small amounts of money I just can't afford the on-chain transaction costs and I am forced into using custodian services to exchange low amounts of fiat value. I wouldn't trust leaving my satoshis on a service like that for too much time because I don't know if in the future WoS will still be around or if they would go out of business.

But When I move my funds to Bitcoin Cash I know that my few cents are now secure and that as long as I have a backup of my private keys somewhere my funds will be okay regardless of location or time. Once my funds are exchanged into the real Bitcoin I don't have to worry about using bank-like services because Bitcoin Cash works as my own private bank with a very low risk of losing my money to third parties and also I have the freedom to use my money as I see fit because I don't have to ask for permission to use my money either.

By having control of my own private keys I can become my own private bank without having to use any third-party bank and zero worries because my funds will be usable even if I am not a rich person, with Bitcoin Cash I can hold amounts that are in pennies and I still get to use my money in a decentralized way. I have to use a very small amount of money because that money comes from rewards that which would also mean that a person earning less than $2 a day can bank with the real Bitcoin.

The monetary freedom that Bitcoin BCH can offer is that every single human being on planet Earth can have independent economic freedom by using the real Bitcoin blockchain that can actually bank the unbank without having to break your wallet and without discrimination just because you happen to earn less than the transaction fee.

At the time of writing this article, the medium transaction fee for Bitcoin Core is $1.18 that will mean that my money sitting on WoS will not be able to be sent into an on-chain wallet, and as such, I wouldn't be able to verify my balance as the real Bitcoin either. With Bitcoin Cash, I have enough money to have my very own bank account and make a few transactions without having to pay more than $0.005 on transaction fees.

I bank using my own private account with the best and first peer-to-peer currency created by Satoshi Nakamoto. Bitcoin Cash can bank 7 billion people today and without high on-chain fees either.

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Written by   93
1 month ago
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Comments

why you dont use muun wallet or phoenix wallet? those are not custodial. btw I do that but in a opposite way from noise cash to muun LN :)

$ 0.00
1 month ago

I have used many wallets. LN all leads to centralization. If your area only use one custodian service you will be forced eventually to open a channel to that node to avoid routing fees and issues.

Example in El Salvador people will use WoS and strike that means that eventually you will need to connect to those two nodes to avoid routing issues, that is centralization.

People with little money and knowledge will be forced to use custodians and those with money will be forced to open channels to those two nodes to avoid routing issues, which will produce even more centralization.

Regardless of wallet with btc high fees everything leads to centralization.

$ 0.00
1 month ago

Pheonix wallet is semi custodian it is not fully decentralized the only LN wallet that is totally decentralized is Eclair Mobile and LN Bitcoin wallet which looks almost like eclair.

Pheonix the developers have access to your channels too I believe it is because they use fast channel creation, I don't know if I am wrong about that when it comes to Pheonix I just know that you can empty your channel with phoenix and you don't need to leave commit fees or reserve fees that mean they have some sort of turbo channel thing where your channel is not totally decentralized. Within their own full nodes they can make it so that your channels can be fast loaded with turbo channels which means centralized nodes.

but the only way for non-trust wallet with LN is eclair for mobile and zap for desktop both private channels only. there is also a full node LN on mobile but i forgot the name kazama kusama or something like that.

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1 month ago

access to the channels? what do you mean? I'm not talking about centralization here. I'm talking about non custodial - open source wallets. If we start talking about centralization, is better to focus on why only 1 pool have 48% of the hash rate of BCH mining, you shouldn't look for decentralization on others coins when BCH is HIGHLY centralized.

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1 month ago

A few weeks ago China was our proof that mining is not so decentralized when 48% of the BTC network went down. To me LN wallets are not decentralized either because it needs nodes. If I only connect to one node like living room of satoshi to save on fees and I only use wallet of satoshi at that point I am not using Bitcoin I am using a banking service that run on top of a token on a sidechain

$ 0.00
1 month ago

https://i.imgur.com/UOjee0N.jpg

I think that Pheonix is a semi-custodial wallet where you can control your channels but also the developers of the apps as well. as you can see my channels are at zero but in LN you must have a commit fee or a reverse fee and both my empty channels don't have that.

That is what gave away for me that something is fishy with Pheonix because you can start from zero to 100 satoshis and the reservation fee or commit fee won't eat your channel liquidity so that will mean your channels with phoenix wallet are not your regular LN channels and that probably there is some sort of custodian features in here for your channels to not have a reserve or commit fee.

With eclair mobile, you have full control of your channels so it is the real LN but you have to deal with reserve fees, Pheonix doesn't that's how I found out that phoenix is not fully non-custodial it is more like a hybrid wallet.

I think Muun is the same as Pheonix in that regard.

$ 0.00
1 month ago

to decentralized also means noncustodial sorry about that

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1 month ago

they manage your channels, they can do it because they do it from their node, they can create and close channels with you, but they cannot touch your funds. they cant because they don't have your private key, that is why is considered non custodial. They cannot block transactions either. I understand LN is very controversial, is good to be critical, but is a very good scaling solution long term.

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1 month ago

Btw, thanks for the sponsorship 😊

$ 0.00
1 month ago