@ 4857600b:30b502f4

Mitch McConnell, a senior Republican senator, announced he will not seek reelection. At 83 years old and with health issues, this decision was expected. After seven terms, he leaves a significant legacy in U.S. politics, known for his strategic maneuvering. McConnell stated, “My current term in the Senate will be my last.” His retirement marks the end of an influential political era.

@ a012dc82:6458a70d

The Financial Accounting Standards Board (FASB) has recently introduced a groundbreaking ruling that significantly alters the way Bitcoin and other cryptocurrencies are accounted for in financial statements. This new development is poised to transform the landscape of crypto accounting, bringing in more transparency and alignment with traditional financial practices. Let's delve into the details of this pivotal change. **Table of Contents** - Introduction to the New FASB Ruling - The Shift to Fair Value Accounting - Understanding Fair Value Accounting - Impact on Financial Reporting - Advantages of the New Approach - Enhanced Transparency and Accuracy - Positive Implications for Companies - Challenges and Considerations - Dealing with Volatility - Auditor Expertise - Industry Response and Future Outlook - Embracing the Change - Long-Term Implications - Conclusion - FAQs **Introduction to the New FASB Ruling** The FASB, the principal body responsible for establishing accounting standards in the United States, announced a new set of rules concerning the accounting of cryptocurrencies like Bitcoin. This announcement marks a significant shift from the previous accounting practices for digital assets. Previously, the lack of clear guidelines led to inconsistencies and uncertainties in how companies reported their crypto holdings. The new ruling aims to standardize these practices and reflects the growing importance of cryptocurrencies in the financial world. **The Shift to Fair Value Accounting** **Understanding Fair Value Accounting** Under the new FASB rules, companies are now required to account for cryptocurrencies at their fair value. Fair value accounting involves assessing assets and liabilities based on their current market value, rather than their historical cost. This approach is expected to provide a more accurate and real-time reflection of a company's financial status. It marks a significant departure from the traditional cost-based accounting methods, which often do not reflect the current market realities, especially in the case of highly volatile assets like cryptocurrencies. **Impact on Financial Reporting** This shift to fair value accounting means that companies holding cryptocurrencies will report the value of these assets based on their market prices at the end of each reporting period. This move is a departure from the previous method where Bitcoin was treated as an intangible asset, leading to certain limitations in financial reporting. For instance, under the old rules, if the value of Bitcoin fell below its purchase price, companies had to report a loss, but they couldn't report an increase in value unless the asset was sold. The new approach allows for a more dynamic and responsive reporting system that better reflects the economic realities of holding cryptocurrencies. **Advantages of the New Approach** **Enhanced Transparency and Accuracy** One of the primary benefits of this new ruling is the increased transparency and accuracy it brings to financial reporting. Companies can now reflect the actual market value of their crypto holdings, providing a clearer picture of their financial health. This change is particularly significant given the volatile nature of cryptocurrencies. By reporting the fair market value, companies can provide stakeholders with a more accurate depiction of their financial standing, which is crucial for informed decision-making by investors, regulators, and other stakeholders. **Positive Implications for Companies** Companies are likely to welcome this change as it allows them to report unrealized gains and losses on cryptocurrencies. This could encourage more businesses to add cryptocurrencies like Bitcoin to their balance sheets, as they can now recognize the appreciation in value without needing to sell the assets. This change could also lead to a broader acceptance of cryptocurrencies as a legitimate and valuable asset class, potentially spurring further investment and innovation in the crypto space. **Challenges and Considerations** **Dealing with Volatility** The inherent volatility of cryptocurrencies like Bitcoin poses a significant challenge in fair value accounting. Companies will need to develop robust methods to accurately assess the market value of these assets, which can fluctuate widely. This volatility requires continuous monitoring and frequent valuation adjustments, which can be resource-intensive and complex. Companies will need to invest in sophisticated valuation models and possibly seek external expertise to ensure accuracy and compliance. **Auditor Expertise** Another challenge lies in the need for auditors to acquire expertise in valuing cryptocurrencies. Assessing the fair market value of digital assets is a complex task that requires specific knowledge and skills. Auditors will need to stay abreast of the rapidly evolving crypto market and develop new methodologies for valuation. This requirement not only adds a layer of complexity to the audit process but also underscores the need for ongoing education and training in this emerging field. **Industry Response and Future Outlook** **Embracing the Change** The industry's response to the FASB's ruling has been largely positive. Industry leaders view this as a step towards mainstream acceptance of cryptocurrencies and a move that aligns digital assets with traditional financial reporting standards. This ruling is seen as a validation of the growing role of cryptocurrencies in the financial sector and a sign that regulatory bodies are beginning to recognize and adapt to the unique characteristics of these digital assets. **Long-Term Implications** In the long run, this ruling could lead to greater institutional adoption of cryptocurrencies. As financial reporting becomes more standardized and transparent, it may foster greater trust and confidence among investors and regulators. This could pave the way for more widespread use of cryptocurrencies in various financial transactions and potentially influence the development of new financial products and services centered around digital assets. **Conclusion** The FASB's latest ruling on cryptocurrency accounting is a landmark decision that aligns the treatment of digital assets with traditional financial practices. While it presents certain challenges, particularly in terms of volatility and the need for specialized auditor expertise, the overall impact is expected to be profoundly positive. This change not only enhances transparency and accuracy in financial reporting but also paves the way for broader acceptance and integration of cryptocurrencies in the mainstream financial world. As the industry adapts to these new rules, we can expect to see a more mature and robust crypto market, potentially leading to innovative financial solutions and greater economic opportunities. **FAQs** **When will the new FASB rules take effect?** The new rules are set to take effect from December 15, 2024, but companies have the option to apply them earlier. **How does fair value accounting affect financial reporting?** Fair value accounting allows companies to report the value of cryptocurrencies based on current market prices, providing a more accurate and real-time reflection of a company's financial status. **What are the benefits of the new FASB ruling?** The new ruling enhances transparency and accuracy in financial reporting and encourages more businesses to add cryptocurrencies to their balance sheets by allowing them to report unrealized gains and losses. **What challenges does the new ruling present?** The main challenges include dealing with the volatility of cryptocurrencies in fair value accounting and the need for auditors to develop expertise in valuing these digital assets. **What is the industry's response to the new ruling?** The industry has largely responded positively, viewing it as a step towards mainstream acceptance of cryptocurrencies and alignment with traditional financial reporting standards. **That's all for today** **If you want more, be sure to follow us on:** **NOSTR: croxroad@getalby.com** **X: [@croxroadnews.co](https://x.com/croxroadnewsco)** **Instagram: [@croxroadnews.co](https://www.instagram.com/croxroadnews.co/)** **Youtube: [@croxroadnews](https://www.youtube.com/@croxroadnews)** **Store: https://croxroad.store** **Subscribe to CROX ROAD Bitcoin Only Daily Newsletter** **https://www.croxroad.co/subscribe** ***DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.***

@ 94a6a78a:0ddf320e

Nostr is a revolutionary protocol that enables **decentralized, censorship-resistant communication**. Unlike traditional social networks controlled by corporations, Nostr operates without central servers or gatekeepers. This openness makes it incredibly powerful—but also means its success depends entirely on **users, developers, and relay operators**. If you believe in **free speech, decentralization, and an open internet**, there are many ways to support and strengthen the Nostr ecosystem. Whether you're a casual user, a developer, or someone looking to contribute financially, **every effort helps build a more robust network**. Here’s how you can get involved and make a difference. --- ## **1️⃣ Use Nostr Daily** The simplest and most effective way to contribute to Nostr is by **using it regularly**. The more active users, the stronger and more valuable the network becomes. ✅ **Post, comment, and zap** (send micro-payments via Bitcoin’s Lightning Network) to keep conversations flowing.\ ✅ **Engage with new users** and help them understand how Nostr works.\ ✅ **Try different Nostr clients** like Damus, Amethyst, Snort, or Primal and provide feedback to improve the experience. Your activity **keeps the network alive** and helps encourage more developers and relay operators to invest in the ecosystem. --- ## **2️⃣ Run Your Own Nostr Relay** Relays are the **backbone of Nostr**, responsible for distributing messages across the network. The more **independent relays exist**, the stronger and more censorship-resistant Nostr becomes. ✅ **Set up your own relay** to help decentralize the network further.\ ✅ **Experiment with relay configurations** and different performance optimizations.\ ✅ **Offer public or private relay services** to users looking for high-quality infrastructure. If you're not technical, you can still **support relay operators** by **subscribing to a paid relay** or donating to open-source relay projects. --- ## **3️⃣ Support Paid Relays & Infrastructure** Free relays have helped Nostr grow, but they **struggle with spam, slow speeds, and sustainability issues**. **Paid relays** help fund **better infrastructure, faster message delivery, and a more reliable experience**. ✅ **Subscribe to a paid relay** to help keep it running.\ ✅ **Use premium services** like media hosting (e.g., Azzamo Blossom) to decentralize content storage.\ ✅ **Donate to relay operators** who invest in long-term infrastructure. By funding **Nostr’s decentralized backbone**, you help ensure its **longevity and reliability**. --- ## **4️⃣ Zap Developers, Creators & Builders** Many people contribute to Nostr **without direct financial compensation**—developers who build clients, relay operators, educators, and content creators. **You can support them with zaps!** ⚡ ✅ **Find developers working on Nostr projects** and send them a zap.\ ✅ **Support content creators and educators** who spread awareness about Nostr.\ ✅ **Encourage builders** by donating to open-source projects. Micro-payments via the **Lightning Network** make it easy to directly **support the people who make Nostr better**. --- ## **5️⃣ Develop New Nostr Apps & Tools** If you're a developer, you can **build on Nostr’s open protocol** to create new apps, bots, or tools. Nostr is **permissionless**, meaning anyone can develop for it. ✅ **Create new Nostr clients** with unique features and user experiences.\ ✅ **Build bots or automation tools** that improve engagement and usability.\ ✅ **Experiment with decentralized identity, authentication, and encryption** to make Nostr even stronger. With **no corporate gatekeepers**, your projects can help shape the future of decentralized social media. --- ## **6️⃣ Promote & Educate Others About Nostr** Adoption grows when **more people understand and use Nostr**. You can help by **spreading awareness** and creating educational content. ✅ **Write blogs, guides, and tutorials** explaining how to use Nostr.\ ✅ **Make videos or social media posts** introducing new users to the protocol.\ ✅ **Host discussions, Twitter Spaces, or workshops** to onboard more people. The more people **understand and trust Nostr**, the stronger the ecosystem becomes. --- ## **7️⃣ Support Open-Source Nostr Projects** Many Nostr tools and clients are **built by volunteers**, and open-source projects thrive on **community support**. ✅ **Contribute code** to existing Nostr projects on GitHub.\ ✅ **Report bugs and suggest features** to improve Nostr clients.\ ✅ **Donate to developers** who keep Nostr free and open for everyone. If you're not a developer, you can still **help with testing, translations, and documentation** to make projects more accessible. --- ## **🚀 Every Contribution Strengthens Nostr** Whether you: ✔️ **Post and engage daily**\ ✔️ **Zap creators and developers**\ ✔️ **Run or support relays**\ ✔️ **Build new apps and tools**\ ✔️ **Educate and onboard new users** **Every action helps make Nostr more resilient, decentralized, and unstoppable.** Nostr isn’t just another social network—it’s **a movement toward a free and open internet**. If you believe in **digital freedom, privacy, and decentralization**, now is the time to get involved.

@ a012dc82:6458a70d

The cryptocurrency world is on the verge of a groundbreaking transformation with the anticipated introduction of Bitcoin Exchange-Traded Funds (ETFs). This significant development is set to redefine the realm of crypto-investment, merging the innovative world of digital currencies with the established domain of traditional finance. Bitcoin ETFs represent a monumental shift, not just as a novel investment option, but as a revolutionary bridge connecting the cutting-edge technology of cryptocurrencies with the more familiar territory of stock market investments. This fusion is poised to unlock a new level of accessibility, drawing mainstream investors into the Bitcoin sphere, who were previously hesitant due to the complexities and perceived risks associated with direct cryptocurrency dealings. **Table of Contents** - The Emergence of Bitcoin ETFs - Unveiling Opportunities - Confronting the Dangers - The Road Ahead - Expanding the Horizon - Enhanced Market Dynamics - Technological Advancements - Educational Initiatives - Global Impact - Conclusion - FAQs **The Emergence of Bitcoin ETFs** Bitcoin ETFs are poised to revolutionize the cryptocurrency market. They offer a streamlined avenue for investment in Bitcoin, bypassing the intricacies of direct ownership such as wallet management and key security. This simplicity could democratize Bitcoin investment, potentially enhancing its liquidity and stability. **Unveiling Opportunities** - **Broader Investor Appeal:** Bitcoin ETFs simplify cryptocurrency investment, making it more approachable for the average investor and traditional financial players. This could lead to wider adoption and recognition of Bitcoin as a viable asset class. - **Influx of Institutional Capital:** ETFs could catalyze a surge of institutional funds into the Bitcoin market. Institutions, previously hesitant due to regulatory and security concerns, might view ETFs as a safer investment avenue. - **Market Evolution:** The advent of Bitcoin ETFs signals a maturation of the cryptocurrency market, transitioning towards regulated, mainstream financial products. This evolution could bolster investor confidence and market stability. **Confronting the Dangers** The introduction of Bitcoin ETFs is not devoid of risks and challenges. - **Amplified Volatility:** Bitcoin's notorious volatility could be intensified by the influx of new investors via ETFs, particularly if large capital movements occur swiftly. - **Regulatory Hurdles:** The evolving regulatory framework for cryptocurrencies could become more complex with Bitcoin ETFs, inviting stricter regulations that may impact the market dynamics. - **Systemic Implications:** Integrating Bitcoin into the traditional financial system through ETFs could introduce new systemic risks. A significant downturn in Bitcoin's value might have broader implications for investors and funds linked to these ETFs. **The Road Ahead** As the Bitcoin ETF era dawns, investors should exercise caution. The potential of Bitcoin ETFs is substantial, but the accompanying risks warrant serious consideration. Investors should engage in comprehensive research and assess their risk appetite before engaging with these new investment vehicles. **Expanding the Horizon** **Enhanced Market Dynamics** The introduction of Bitcoin ETFs could lead to more dynamic market behaviors. As traditional and crypto markets become more intertwined, the impact of global economic events on Bitcoin's price could become more pronounced, leading to new investment strategies and market analysis techniques. **Technological Advancements** The growth of Bitcoin ETFs might spur technological advancements in trading platforms and financial tools. Enhanced security measures, improved trading algorithms, and more sophisticated risk management tools could emerge, catering to the unique needs of cryptocurrency ETFs. **Educational Initiatives** With the growing interest in Bitcoin ETFs, there's likely to be an increase in educational resources and initiatives aimed at helping investors understand the nuances of cryptocurrency investments. This could lead to a more informed investor base, capable of making better investment decisions in the volatile world of cryptocurrencies. **Global Impact** The success of Bitcoin ETFs in one region, such as the United States, could encourage other countries to follow suit, leading to a more globalized cryptocurrency market. This could have significant implications for international financial regulations and cooperation. **Conclusion** The potential introduction of Bitcoin ETFs marks a significant milestone in the journey of cryptocurrency investment. While it heralds new opportunities and greater accessibility, it also brings forth challenges and risks that need to be navigated with care. The future of Bitcoin ETFs will hinge on the balance between these opportunities and dangers, and the market's ability to adapt to this new phase of crypto-investment. As we stand at the threshold of this exciting era, the global financial community watches with bated breath, ready to witness the unfolding story of Bitcoin ETFs. **FAQs** **How does a Bitcoin ETF differ from direct Bitcoin investment?** Investing in a Bitcoin ETF means you're investing in a fund that holds Bitcoin as its primary asset, as opposed to buying Bitcoin directly and managing your own digital wallet and security. ETFs are also subject to different regulatory and tax treatments. **What are the benefits of Bitcoin ETFs?** Bitcoin ETFs offer easier access to Bitcoin investment, potentially lower risks compared to direct ownership, and the convenience of trading through traditional investment platforms. **What risks are associated with Bitcoin ETFs?** Risks include the inherent volatility of Bitcoin, potential regulatory changes, and systemic risks if the cryptocurrency market impacts the broader financial system. **Are Bitcoin ETFs available globally?** The availability of Bitcoin ETFs varies by country, depending on the regulatory environment. Some countries may not yet have approved Bitcoin ETFs for trading. **Can Bitcoin ETFs impact the price of Bitcoin?** Yes, Bitcoin ETFs can impact Bitcoin's price as they can increase market liquidity and bring in more institutional investors, potentially leading to price changes. **That's all for today** **If you want more, be sure to follow us on:** **NOSTR: croxroad@getalby.com** **X: [@croxroadnews.co](https://x.com/croxroadnewsco)** **Instagram: [@croxroadnews.co](https://www.instagram.com/croxroadnews.co/)** **Youtube: [@croxroadnews](https://www.youtube.com/@croxroadnews)** **Store: https://croxroad.store** **Subscribe to CROX ROAD Bitcoin Only Daily Newsletter** **https://www.croxroad.co/subscribe** ***DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.***

@ e83b66a8:b0526c2b

In the UK, as Bitcoin on-ramps become throttled more and more by government interference, ironically more and more off-ramps are becoming available. So here, as Bitcoin starts its bull run and many people will be spending or taking profits within the next year or so, I am going to summarise my experience with off ramps. N.B. many of these off-ramps are also on-ramps, but I’m primarily focusing on spending Bitcoin. Revolut: At last in the UK, Revolut is a “probation” full bank and so now has most of the fiat guarantees that other legacy banks have. Apart from its excellent multi-currency account services for fiat, meaning you can spend native currencies in many countries, Revolut have for some time allowed you to buy a selection of Crypto currencies including Bitcoin. You can send those coins to self custody wallets, or keep them on Revolut and either sell or spend on specific DeFi cards which can be added to platforms like Apple Pay. Fees, as you would expect are relatively high, but it is a very good, seamless service. Uphold: This was an exchange I was automatically signed up to by using the “Brave Browser” and earning BAT tokens for watching adds. I have however found the built in virtual debit card, which I’ve added to Apple Pay useful for shedding my shitcoins by cashing them in and spending GBP in the real world, buying day to day stuff. Xapo Bank: I signed up about a year ago to the first “Bitcoin Bank” founded by Wences Casares a very early Bitcoiner. They are based in Gibraltar and offer a USD, Tether and Bitcoin banking service which allows you to deposit GBP or spend GBP, but converts everything into either USD or BTC. You have a full UK bank account number and sort code, but everything received in it is converted to USD on the fly. They also support Lightning and they have integrated LightSparks UMA Universal Money Addressing protocol explained here: https://www.lightspark.com/uma When I signed up the fees were $150 per annum, but they have since increased them to $1,000 per annum for new users. I have yet to use the bank account or debit card in any earnest, but it will be my main spending facility when I take profits Strike: Strike it really focused on cross border payments and sending fiat money around the world for little to no cost using Bitcoin as the transmission rails. You need to KYC to sign up, but you then get, in the UK at least, a nominee bank account in your name, a Lightning and Bitcoin wallet address and the ability to send payments immediately to any other Strike user by name, or any Bitcoin or Lightning address. In the U.S. they have also recently launched a bill pay service, using your Strike account to pay your regular household bills using either fiat or Bitcoin. Coinbase: Back in 2017, I signed up for a Coinbase debit card and was spending Sats in daily life with it automatically converting Sats to GBP on the fly. I let it lapse in 2021 and haven’t bothered to replace it. I believe it is still option to consider. Crypto.com I have a debit card which I cannot add to Apple Pay, but I have managed to add it to Curve card: https://www.curve.com/en-gb/ which is in turn added to Apple Pay. This allows me to spend any fiat which I have previously cashed from selling coins. I currently have some former exchange coins cashed out which I am gradually spending in the real world as GBP. SwissBorg Has had a troubled past with the FCA, but does currently allow deposits and withdrawals from UK banks, although Barclays have blocked transactions to my own nominee account within SwissBorg on a couple of occasions. They have a debit card option for investors in their platform, which I am not and they intend to make this generally available in the future. SwissBorg are a not an exchange, but more of a comparison site, searching the market for the best prices and activating deals for you across multiple platforms, taking a commission. They have been my main source for buying BTC and when they are not being interfered with by the FCA, they are excellent. You also get a nominee bank account in their platform in your own name.

@ c4b5369a:b812dbd6

As promised in my last article: nostr:naddr1qvzqqqr4gupzp394x6dfmvn69cduj7e9l2jgvtvle7n5w5rtrunjlr6tx6up9k7kqq2k6ernff9hw3tyd3y453rdtph5uvm6942kzuw08y0 In this one we will dive into how exactly an unidirectional payments channel powered ecash mint system would be implemented, using the tech available today! So if you haven't read that article yet, give it a read! I first intended to write a longwinded article, explaining each part of the system. But then I realized that I would need some visualization to get the message across in a more digestable way. This lead me to create a slide deck, and as I started to design the slides it became more and more clear that the information is easier shown with visualizations, than written down. I will try to give a summary as best as I can in this article, but I urge you, to please go visit the slide deck too, for the best experience: ----------- ### [TAKE ME TO THE SLIDE DECK!](https://uni-chan.gandlaf.com/) ----------- ### Intro In this article we will go over how we can build unidirectional payment channels on Bitcoin. Then we will take a look into how Cashu ecash mints work, and how we can use unidirectional payment channels to change the dynamics between ecash users and the mint. Before we start, let me also give credits to nostr:npub1htnhsay5dmq3r72tukdw72pduzfdcja0yylcajuvnc2uklkhxp8qnz3qac for comming up with the idea, to nostr:npub148jz5r9xujcjpqygk69yl4jqwjqmzgrqly26plktfjy8g4t7xaysj9xhgp for providing an idea for non-expiring unidirectional channels, and nostr:npub1yrnuj56rnen08zp2h9h7p74ghgjx6ma39spmpj6w9hzxywutevsst7k5cx unconference for hosting an event where these ideas could be discussed and flourish. ### Building unidirectional payment channels If you've read the previous article, you already know what unidirectional payment channels are. There are actually a coupple different ways to implement them, but they all do have a few things in common: 1. The `sender` can only send 2. The `Receiver` can only receive 3. They are VERY simple Way simpler than the duplex channels like we are using in the lightning network today, at least. Of course, duplex channels are being deployed on LN for a reason. They are very versatile and don't have these annoying limitations that the unidirectional payment channels have. They do however have a few drawbacks: 1. Peers have liveness requirements (or they might forfeit their funds) 2. Peers must backup their state after each transaction (if they don't they might forfeit their funds) 3. It is a pretty complex system This article is not meant to discredit duplex channels. I think they are great. I just also think that in some use-cases, their requirements are too high and the system too complex. But anyway, let's see what kind of channels we can build! #### Spillman/CLTV-Channel The Spillman channel idea has been around for a long time. It's even explained in Tadge Dryjas [Presentation](https://www.youtube.com/watch?v=Hzv9WuqIzA0&t=1969s) on Payment channels and the lightning network from back in the day. I compiled a list of some of the most important propperties of them in the slide below:  Great! Now that we know their properties, let's take a look at how we can create such a channel ([Slides](https://uni-chan.gandlaf.com/#/11)):  We start out by the `sender` creating a `funding TX`. The `sender` doesn't broadcast the transaction though. If he does, he might get locked into a multisig with the `receiver` without an unilateral exit path. Instead the `sender` also creates a `refund TX` spending the outputs of the yet unsigned `funding TX`. The `refund TX` is timelocked, and can only be broadcast after 1 month. Both `sender` and `receiver` can sign this `refund TX` without any risks. Once `sender` receives the signed `refund TX`, he can broadcast the `funding TX` and open the channel. The `sender` can now update the channel state, by pre-signing update transactions and sending them over to the `receiver`. Being a one-way channel, this can be done in a single message. It is very simple. There is no need for invalidating old states, since the `sender` does not hold any signed `update TXs` it is impossible for the `sender` to broadcast an old state. The `receiver` only cares about the latest state anyways, since that is the state where he gets the most money. He can basically delete any old states. The only thing the `receiver` needs to make sure of, is broadcasting the latest `update TX` before the `refund TX's` timelock expires. Otherwise, the `sender` might take the whole channel balance back to himself. This seems to be already a pretty useful construct, due to its simplicity. But we can make it even more simple!  This setup works basically the same way as the previous one, but instead of having a refund transaction, we build the `timelock` spend path directly into the `funding TX` This allows the `sender` to have an unilateral exit right from the start, and he can broadcast the `funding TX` without communicating with the `receiver`. In the worst case, the receiver rejects the channel, and the sender can get his money back after the timelock on the output has expired. Everything else basically works in the same way as in the example above. The beauty about this channel construct is in its simplicity. The drawbacks are obvious, but they do offer some nice properties that might be useful in certain cases.  One of the major drawbacks of the `Spillman-style channels` (apart from being unidirectional) is that they expire. This expiry comes with the neat property that neither of the party has to watch the chain for channel closures, and the `sender` can operate the channel with zero additional state, apart from his private keys. But they do expire. And this can make them quite inflexible. It might work in some contexts, but not so much in others, where time needs to be more flexible. This is where `Roose-Childs triggered channels` come into play. #### Roose-Childs triggered channel (I gave it that name, named after nostr:npub148jz5r9xujcjpqygk69yl4jqwjqmzgrqly26plktfjy8g4t7xaysj9xhgp and nostr:npub1htnhsay5dmq3r72tukdw72pduzfdcja0yylcajuvnc2uklkhxp8qnz3qac . If someone knows if this idea has been around before under a different name, please let us know!) `Roose-Childs triggered channels` were an idea developed by Steven and Luke at the nostr:npub1yrnuj56rnen08zp2h9h7p74ghgjx6ma39spmpj6w9hzxywutevsst7k5cx unconference. They essentially remove the channel expiry limitation in return for introducing the need for the `sender` to create a channel backup at the time of channel creation, and for the `receiver` the need to watch the chain for trigger transactions closing the channel.  They also allow for splicing funds, which can be important for a channel without expiry, allowing the `sender` to top-up liquidity once it runs out, or for the `receiver` taking out liquidity from the channel to deploy the funds elsewhere. Now, let's see how we can build them!  The `funding TX` actually looks the same as in the first example, and similarly it gets created, but not signed by the `sender`. Then, sender and receiver both sign the `trigger TX`. The `trigger TX` is at the heart of this scheme. It allows both `sender` and `receiver` to unilaterally exit the channel by broadcasting it (more on that in a bit). Once the `trigger TX` is signed and returned to the `sender`, the sender can confidently sign and boradcast the `funding TX` and open the channel. The `trigger TX` remains off-chain though. Now, to update the channel, the `sender` can pre-sign transactions in similar fashion to the examples above, but this time, spending the outputs of the unbroadcasted `trigger TX`. This way, both parties can exit the channel at any time. If the `receiver` wants to exit, he simply boradcasts the `trigger TX` and immediately spends its outputs using the latest `update TX`. If the `sender` wants to exit he will broadcast the `trigger TX` and basically force the `receivers` hand. Either, the `receiver` will broadcast the latest `update TX`, or the `sender` will be able to claim the entire channel balance after the timelock expired.  We can also simplify the `receiver's` exit path, by the `sender` pre-signing an additional transaction `R exit TX` for each update. this way, the `receiver` only needs to broadcast one transaction instead of two.  As we've mentioned before, there are some different trade-offs for `Roose-Childs triggered channels`. We introduce some minimal state and liveness requirements, but gain more flexibility.  #### Ecash to fill in the gaps (I will assume that the reader knows how ecash mints work. If not, please go check the [slides](https://uni-chan.gandlaf.com/#/43) where I go through an explanation) Essentially, we are trying to get a lightning like experience, without all the lightning complexities and requirements. One big issue with ecash, is that it is fully custodial. If we can offset that risk by holding most of the funds in a self custodial channel, we can have a reasonable trade-off between usability and self custody.  In a system like that, we would essentially turn the banking model onto its head. Where in a traditional bank, the majority of the funds are held in the banks custody, and the user only withdraws into his custody what he needs to transact, in our model the user would hold most funds in his own custody.  If you ask me, this approach makes way more sense. Instead of a custodian, we have turned the "bank" into a service provider. Let's take a look at how it would work in a more practical sense:  The `ecash user` would open an unidirectional payment channel to the `mint`, using one of his on-chain UTXOs. This allows him then to commit incrementally funds into the mints custody, only the amounts for his transactional needs. The mint offers connectivity to the lightning network an handles state and liveness as a service provider. The `ecash user`, can remain offline at all times, and his channel funds will always be safe. The mint can only ever claim the balance in the channel via the `update TXs`. The `mint` can of course still decide to no longer redeem any ecash, at which point they would have basically stolen the `ecash user's` transactional balance. At that point, it would probably be best for the `ecash user` to close his channel, and no longer interact or trust this `mint`. Here are some of the most important points of this system summarized:  And that is basically it! I hope you enjoyed this breakdown of Unidirectional payment channel enabled Ecash mints! If you did, consider leaving me a zap. Also do let me know if this type of breakdown helps you understand a new topic well. I am considering doing similar breakdowns on other systems, such as ARK, Lightning or Statechains, if there is a lot of interest, and it helps people, I'll do it! Pleas also let me know what you think about the `unidirectional channel - ecash mint` idea in the comments. It's kind of a new idea, an it probably has flaws, or things that we haven't thought about yet. I'd love to discuss it with you! I'll leave you with this final slide:  Cheers, Gandlaf