LN DAO wallet-the “whitepaper”
Bitcoin is magical internet money or atleast that what some guy on the internet told me. It also hard money, censorship-resistant money and that expensive coin that “You” compare to cheaper ones such as Ripple.
(To any one wondering this… Is this a serious whitepaper? Maybe, Maybe not.)
What ever the case is: Bitcoin is number 1. LN has advanced Bitcoin capability and renewed developer interest. However a key problem exists…Letting LN to be used to newbies… How do you do this? Tell them to run a full node? Ok Pierre Rochard node launcher is amazing!
But it is still to hard-sadly-for mass use. So what have users done? Gone to Custodial options. It easy, free, and you have instant liquidity! The rise of these services-Blue wallet,Tippme and others have lead many to use LN for their first time and renew their interest in Bitcoin. It good and all and if you just use like $20 or less it no biggie. But that thing your still trusting someone to centrally hold your funds…
So what can you do?
Well you could wait for Neutrino wallet which basically a SPV wallet LN. But then you have the dreaded liquidity problem(atleast early on).
So what other alternatives are there?
That what this totally real whitepaper is for.
DAO wallets. You heard of what DAO are right? Decentralized Autonomous Organization are a way for shareholders to vote on decisions. To some, DPOS can be considered a DAO. Let face it DPOS has issues and can turn into an oligarchy…
But that just the consensus layer. What if you made as a third layer?
Bitcoin would be the first layer. LN will be the second layer. DAO will be a third layer aka a layer on top of the LN.
How can this be done you say?
Say you create a type of hosting platform or a blockchain(?) that the DAO is rested on/made on. Each DAO holder votes on the people who have access to the platform(keys?)
This hosting platform will be the full node. And LN channels will be made from/to it.
This is “level one security”.
The DAO can make separate people and/or the same people to hold the private keys of the network. I tried um googling it but I have yet to confirm this if it is true but whatever…? The Private keys of this LN node will be mutli-siged but the multi sigs are tied to DAO token by %. As such they will be vote on who have access to the bitcoins. The ones who have access will be in charge of opening/closing LN channels. And a trigger of 60% tokens will do a recount /revote of the people or something. This is “level two security”.
A third level security can made using DAO voted in Oracles/or the people voted in will be the oracles? Read on the basics of LN based Oracles here:
And that my DAO idea basically.
Enhancements of the DAO can be done are like host management software like LNDhub.
Flaws:
Colluding of funds of DAO. Economic interest might prevent this?
Making DAO votes actually participate in voting in…
How will the token be distributed? I for was am thinking of some type of ICO expect all-most funds will be used to open LN channels. But whatever…
The idea is still custodial in a way. In a DAO model you basically created a distributed based trust system.
What can be done to migrate some of those risks?
Maybe a type of DAO Federated sidechain platform. You’ll get a private key to the sidechain wallet. The sidechain wallet will work pretty much like a DAO wallet expect the system will have more strain with the pegged of the bitcoins internally. The sidechain based wallet will work with LN like a regular LN wallet. Is it better? It gives more feeling of Decentralized but it might just weakened version of a custodial wallet.
Conclusion:
LN still has a long way to go before being mass adopted.
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While this articles might of been done as somewhat of a joke. The idea might just work. Will it be good? IDK. Since it not only the base layer is it better than a separate token? IDK. I don’t control bitcoin and that the point. All ways of fixing problems of LN should be discussed no matter how bad and dumb it is!
And now I will be linking this in my Convo when ever I can about my DAO jokes.
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Want to totally get in my future ICO? Go ahead and tip me here:
Put your address in the memo or something. I probably keep the fund for myself though lel
