4 ms·

Using a closed, centralized implementation that doesn't accept third party nodes. The use of bitcoin is pure marketing, it's just MySQL with extra steps.

by simias 5y ago

delaaxe 5y ago
Source?
- lawn 5y ago
  They will be using Strike, which is a custodial wallet.
WanderPanda 5y ago
Wait, it does not allow third party nodes? What is my Raspberry Pi right next to me doing? Just pretending to be a Lightning Node?
- cmckn 5y ago
  Parent is referring to El Salvador's proposed usage, not the wider lightning network.
krick 5y ago
This is interesting. Obviously, I heard about the whole "El Salvador something something Bitcoin" deal, but am completely unaware of the actual situation. Can somebody point me in the direction of some nice writeup explaining these details? I can only vaguely imagine how one can take Bitcoin and make it essentially an extension of SWIFT, and struggle to clearly visualize what the implications of this are.
- pixelperfect 5y ago
  The legislation that made Bitcoin legal tender in El Salvador does not legislate the use of Strike. Businesses can use whatever system they want, as long as they can accept payment in Bitcoin. Strike is providing a service that allows any business to take Bitcoin lightning payments and have them automatically converted to dollars, for businesses that do not want to hold Bitcoin. It's not fair to just call this a "sql database" because it's connected to an open payment network and the customer can use whatever means they want to pay the business, even if the business decides to just uses Strike.
- counternotions 5y ago
  From Strike CEO Jack Maller [1]: Let’s walk through a user story. I want to send $1,000 to a friend of mine in El Salvador: * When I initiate the $1,000 payment, Strike debits my existing USD balance. * Strike then automatically converts my $1,000 to bitcoins ready for use in its infrastructure using its real-time automated risk management and trading infrastructure. * Strike then moves the bitcoins across the Gulf of Mexico where it arrives in our Central American infrastructure in less than a second and for no cost. * Strike then takes the bitcoins and automatically converts them back into USDT (synthetic digital dollar known as Tether) using its real-time automated risk management and trading infrastructure. * Strike then credits the existing user with the USDT to their Strike account. [1] https://jimmymow.medium.com/announcing-strike-global-2392b908f611 https://jimmymow.medium.com/announcing-strike-global-2392b90...
  - noxer 5y ago
    There is no bitcoin needed for this at all its does not even move on the chain for the transfer. Both sides are Strike entities all this does is use bitcoin as a bridge for USD to USD which is completely pointless as both sides are USD. You could just buy USDT (or another stabelcoin) and send it there. Its a different story if there is actually a switch in currency needed. There is this famous and from bitcoin people often hated company called Ripple that specializes on cross-border settlement using crypto as a bridge currency. For that however the crypto must be actually moved and be sold locally for the local currency. And for that to work without risk due to volatility it must be fast. Hence they use XRP (4 sec) instead of bitcoin (10+ min). They call it ODL (On-Demand Liquidity). See https://ripple.com/ripplenet/on-demand-liquidity/ https://ripple.com/ripplenet/on-demand-liquidity/
    - krick 5y ago
      Please somebody explain why it's downvoted. Ignoring digression about XRP, this is exactly what I read from the parent comment. Judging by the user-story above, all this talk about how BTC is being "sent" (which, as we all know, is a small lie on it's own, since unlike fiat, BTC is never really being sent anywhere) seems just to distract us from the fact that we just end up buying USDT for USD. No BTC involvement required.
doomroot 5y ago
The ceo of strike said they are continually promoting that banks and businesses in the El Salvador operate their own lightning network nodes & not to solely rely on them. Only the government’s official (but optional) app will be a wrapper around strike.

Using a closed, centralized implementation that doesn't accept third party nodes. The use of bitcoin is pure marketing, it's just MySQL with extra steps.

by simias 5y ago

Using a closed, centralized implementation that doesn't accept third party nodes. The use of bitcoin is pure marketing, it's just MySQL with extra steps.

delaaxe 5y ago

Source?

lawn 5y ago
They will be using Strike, which is a custodial wallet.

WanderPanda 5y ago

Wait, it does not allow third party nodes? What is my Raspberry Pi right next to me doing? Just pretending to be a Lightning Node?

cmckn 5y ago
Parent is referring to El Salvador's proposed usage, not the wider lightning network.

krick 5y ago

This is interesting. Obviously, I heard about the whole "El Salvador something something Bitcoin" deal, but am completely unaware of the actual situation. Can somebody point me in the direction of some nice writeup explaining these details? I can only vaguely imagine how one can take Bitcoin and make it essentially an extension of SWIFT, and struggle to clearly visualize what the implications of this are.

pixelperfect 5y ago
The legislation that made Bitcoin legal tender in El Salvador does not legislate the use of Strike. Businesses can use whatever system they want, as long as they can accept payment in Bitcoin. Strike is providing a service that allows any business to take Bitcoin lightning payments and have them automatically converted to dollars, for businesses that do not want to hold Bitcoin. It's not fair to just call this a "sql database" because it's connected to an open payment network and the customer can use whatever means they want to pay the business, even if the business decides to just uses Strike.
counternotions 5y ago
From Strike CEO Jack Maller [1]: Let’s walk through a user story. I want to send $1,000 to a friend of mine in El Salvador: * When I initiate the $1,000 payment, Strike debits my existing USD balance. * Strike then automatically converts my $1,000 to bitcoins ready for use in its infrastructure using its real-time automated risk management and trading infrastructure. * Strike then moves the bitcoins across the Gulf of Mexico where it arrives in our Central American infrastructure in less than a second and for no cost. * Strike then takes the bitcoins and automatically converts them back into USDT (synthetic digital dollar known as Tether) using its real-time automated risk management and trading infrastructure. * Strike then credits the existing user with the USDT to their Strike account. [1] https://jimmymow.medium.com/announcing-strike-global-2392b908f611 https://jimmymow.medium.com/announcing-strike-global-2392b90...
- noxer 5y ago
  There is no bitcoin needed for this at all its does not even move on the chain for the transfer. Both sides are Strike entities all this does is use bitcoin as a bridge for USD to USD which is completely pointless as both sides are USD. You could just buy USDT (or another stabelcoin) and send it there. Its a different story if there is actually a switch in currency needed. There is this famous and from bitcoin people often hated company called Ripple that specializes on cross-border settlement using crypto as a bridge currency. For that however the crypto must be actually moved and be sold locally for the local currency. And for that to work without risk due to volatility it must be fast. Hence they use XRP (4 sec) instead of bitcoin (10+ min). They call it ODL (On-Demand Liquidity). See https://ripple.com/ripplenet/on-demand-liquidity/ https://ripple.com/ripplenet/on-demand-liquidity/
  - krick 5y ago
    Please somebody explain why it's downvoted. Ignoring digression about XRP, this is exactly what I read from the parent comment. Judging by the user-story above, all this talk about how BTC is being "sent" (which, as we all know, is a small lie on it's own, since unlike fiat, BTC is never really being sent anywhere) seems just to distract us from the fact that we just end up buying USDT for USD. No BTC involvement required.

doomroot 5y ago

The ceo of strike said they are continually promoting that banks and businesses in the El Salvador operate their own lightning network nodes & not to solely rely on them. Only the government’s official (but optional) app will be a wrapper around strike.