Payment Channels and Protocols
Exploring some building blocks and tools for tiny payment businesses
After the first video I put up about tiny payments, I got a bunch of DMs from people telling me about their favorite protocol. Nano, Dash, Bitcoin Cash, BSV, and even a few Lightning Network fans messaged me.
The focus with this newsletter is a protocol agnostic approach to exploring business models and opportunities around tiny payments. But part of that involves discussing the pros and cons of various elements of the tech stack, and who’s doing what with what.
Out of curiosity, I tweeted the following poll:
This mirrors my own findings pretty accurately in terms of which protocols make the most business sense to build on right now, given the various risks and unknowns associated.
But the point isn’t to pick a winner or get tribal about protocols. The point is to inspire anyone interested in tiny payment businesses to consider and explore what tech might serve them, and what communities exist to support the tech.
In that vein, I was thrilled to have Cyprian (aka Vin Armani) join me for a great discussion on micropayment use cases, why he thinks payment channels are an under-appreciated mechanism for builders to reap better revenues, and what to look for in a protocol.
We don’t get deep into protocol debates, but explore his story and experiments with tiny payment apps including CointText, and he lays out some high level thoughts for builders.
I had a blast, as evidenced by the fact that the convo went over two hours. I think you’ll find a lot in here to get hyped about.
It gets a tad technical at points for those new to this, but stay with it. The main ideas don’t require tech knowledge.