HandCash / Tokenized Consideration

Going full HandCash is tempting

The Tokenized protocol

Questions for Tokenized

Double spend resolution

Scalability

Fraud prevention

Privacy

Concerns with HandCash / Tokenized integration

  1. Delivery could take longer than expected. Paymail / p2p are not implemented yet, nor are features such as automatic reconciliation
  2. Tokenized has not been implemented in production yet. Any potential issues will likely remain unforeseen until Tokenized is in production (also exacerbating 1)
  3. Tokenized actions (mint, transfer, redeem etc) will not work if the SCA goes offline. Contrast this with the STAS protocol that only relies on miners for all actions while leaning on an indexer for checks that can be run by any 3rd party
  4. Tokenized does not use bitcoin for settlement. Tokenized only uses bitcoin for public auditability. The Tokenized philosophy is basically: “if there is dependence upon a 3rd party anyway, such as for issuance and redemption, then why not use that 3rd party as a SCA to make token actions more simple”. The problem with this philosophy is that a user must now trust (but can verify) two parties — the miners AND the SCA as an oracle, instead of trusting only miners through a non-authoritative indexer.
  5. Vendor lock-in with Tokenized, meaning that we should either trust the Tokenized team to maintain our SCA or maintain it ourselves as an open source software.
  6. Inheritance of an array of legal responsibilities and the need to directly resolve disputes stemming from the fact that Tokenized is custodial in nature. Similar to this, read Centi’s position on avoiding the legal implications of being a ‘payment processor’ vs being a ‘cash handler’

DXS actions

  1. Continued development of Fiorin wallet, USDC / USDT ERC20 bridge and STAS tooling so we can pull the trigger on USD-backed trading on DXS as soon as possible
  2. Consider including USDC-Tokenized to USDC-STAS bridge feature within Fiorin wallet
  3. Keep an eye on the HandCash / Tokenized integration (in particular the HandCash roadmap). Remain open to transitioning token protocols if our concerns turn out to be unjustified and HandCash starts to generate serious network effects
  4. Look to integrate Tokenized for address / key management for our BSV cold wallets

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