Nostr developer fiatjaf suggests using Spacechains and Fedimint to solve the Bitcoin scalability issue

2023-05-10 16:05:38
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ChainCatcher message, the developer of the decentralized social protocol Nostr, fiatjaf, stated in a blog post that he suggests using Spacechains and Fedimint (a Bitcoin custodial open-source protocol) to address the Bitcoin scalability issue. According to fiatjaf's proposal, the following can be done without attempting to create complex "layer 2" setups involving new cryptographic technologies:

  1. Adopt the Fedimint source code and remove the "mint" feature, only using their secure Token with multisig and federation features;
  2. Then create a Spacechains;
  3. Allow the federation to issue multisig-btc Tokens on Spacechains;
  4. Set up facilities similar to Uniswap on it, allowing these Tokens to be freely traded.

fiatjaf explained the reason for proposing this idea: "The recent surge in fees caused by Ordinals and BRC-20 Tokens indicates that the Lightning Network is not a panacea. The channels are too fragile, and the costs of opening channels and running routing nodes in a high-fee environment are very high. Those who want to continue using the Lightning Network are turning to large Lightning Network custodial providers: WalletofSatoshi, ZEBEDEE, OpenNode, and so on. We can leverage people's trust in these companies (and individuals) operating Lightning Network providers, turning each of them into a Bitcoin token issuer. Each company issues its own Token, and trading flows freely. Everyone can only hold assets from the issuers they trust more." (source link)

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