delvingbitcoin

Stable Channels - peer-to-peer dollar balances on Lightning

Stable Channels - peer-to-peer dollar balances on Lightning

Posted on: May 30, 2024 15:49 UTC

The discussion centers on the comparison between "hosted channel" concepts and Stable Channels, highlighting several key differences.

A primary concern is whether the "hosted channel" approach involves custodial elements, contrasting with Stable Channels where users maintain self-custody. Another point of differentiation is the source of exchange rates; unlike the unspecified method in the "hosted channel," Stable Channels rely on independently queried exchange price feeds by both participating nodes to determine rates. Furthermore, the email queries the mechanism for maintaining parity with Standard Sats, specifically the frequency and initiation of settlements between parties. In the case of Stable Channels, it's clear that there is a shared responsibility between the nodes to frequently settle in order to ensure the peg to the underlying asset, suggesting a more collaborative approach to maintaining value stability.