The monero community is building a lot of infrastructure to build a circular economy, and there is a lot of recent developments in that regard, such as xmrbazaar which is a sort of ebay and the sellers accepts monero. This is great. However, how can we penetrate markets outside of the monero economy? I fear that Monero still has the “dangerous hacker crypto which funds terrorism and north korea” reputation, and although while not true, could severely pause monero adoption and hurt us as a community as a whole.
We as a community value privacy, but i feel like we need to work together as a community to forge an alternative to the mainstream narrative about privacy coins. I’m thinking something revolutionarily positive, at least in the USA, such as making a charity that gives directly to homeless people, or setting up a decentralized network of people that work together to distribute life saving drugs for cheap (because drug prices are really fricking high here). Privacy coins tend to attract privacy minded people, and privacy minded people won’t even touch twitter with a 10 foot pole because of all the injected ads and the tracking, and i respect that. But, one of these days we gotta do something big to break the mainstream narrative.
I personally am locked in, I have a girlfriend and two pets and a full time job, but for those that have less to lose and more time and resources to spare for the cause, i say let’s fking do it. Anything, man. Let’s change society with this thing.
L2 means “layer two”, in short, a way of conducting transactions “off-chain” while relying on the “base chain”/L1 for security. It helps keep chain bloat minimal.
There are various ways to do this with various trade-offs in terms of speed/privacy/cost/centralization/etc. Bitcoin’s main one is lightning (there’s also Ark), Eth has like a dozen of them most of which are super centralized but you’ve got Polygon, Arbitrum, Optimism, Nova, etc. They all work a little differently.
Lightning’s concept is very simple: you make a “channel” on-chain by depositing funds into that smart contract which lives on-chain (1 transaction). The channel exists between you and one other party. The channel starts with a balance of 100/0 meaning all the BTC is yours (because you deposited the BTC). When you send BTC to the other party, you update the “balance” of that channel by both of you signing a thing saying it’s updated (now it’s 99/1). This happens off-chain. At any point, either of you can close the channel (on-chain) and claim any BTC that’s due to them according to the balance. In this example, you would get back 99 BTC and the other person would get 1. You can also transact with other parties by sending BTC “through” a chain of existing channels. And these transactions not only don’t require paying on-chain fees, they can also be confirmed in < 1 second because you don’t need to wait for the next block. You can have essentially infinite transactions back-and-forth in a channel, but one “side” of the channel cannot dip below 0. Almost all of this is abstracted away for the end user.
Thank you for that very well thought out explanation. I think I understand now