Check out strike app. It’s an lightning based $US denominated peer to peer payment app (ala Venmo and cash app) and lightning wallet (allows paying lightning invoices). Multiple country (eventually all, as it relies on BTC LN network for settlement). It’s as easy to use as cash app, and doesn’t even mention bitcoin at all. No sir, not 18 months. There is innovation everywhere.
That actually addresses none of my criticisms of LN though. Why would I want to pay $20-40 to open a channel to obtain the same functionality I get free of charge from my existing dollar denominated Cash App, Cash App? Not to mention when I do, I don't have to pay taxes on every transaction. This is another worse solution, except with crypto.
You didn’t check out the app! There are no lightning channel establishment costs to the user (it’s submarine swaps, server side) The behavior is identical to cash app. It’s also all USD and there are no tax implications (explicitly mentioned in the app). It literally solves all of your concerns.
It’s indistinguishable from cash app to the user. Except that it works internationally and very low fees. It’s better solution than cash app but with crypto (abstracted from the user).
Wait lol, why is Bitcoin involved at all? You literally have to deposit your cash into their un-insured custodial account, then they move it around internally. They could just move database entries around on their own servers. They just need to keep a liquidity pool on both sides for the (likely very few) international transfers that happen, and settle up on a rolling basis with a $20 wire transfer. No bitcoin necessary lol.
I mean they don't even allow anyone else to connect to their lightning nodes.
[edit] oh I get it, they don't want to register as money transmitters haha, it's just to avoid regulation.
They are not avoiding regulation at all — they are avoiding legacy money transmission networks! They are regulated because they transmit money in the US (KYC/AML etc).
It’s using the Lightning Network to replace traditional interbank networks like Swift. Or ACH (at least for outgoing payments) If you don’t see this as a valuable thing, I’m sorry.
It also allows arbitrary payments to lightning invoices denominated in USD, you can pay any user of the app, or any lightning invoices.
You don’t need to connect to lightning nodes - it is a network and if you need to route through them, it will.
Why bitcoin? Because they don’t need to maintain a liquidity pools and use swift to balance the USD pools. They can use cheap LN payments to instead of swift for settlement. Note that LN is unfairly cheap to use. An order cheaper than swift.
