If I got it right, you are talking about true decentralized cypherpunk options, which is a great as an idea, but I can only imagine all the hassle associated with this. I have to dig deeper into the Grin’s principles and the math behind it, but for now it seems that even a simple implementation of oracle will be a big obstacle.
Another post of yours caught my attention [NEW] Grin peg chain for Cosmos Hub need : [OLD] Can I do atomic swaps between Cosmos (ATOM) and Grin? - #15 by SiriusB
and I think that this is what we really need here.
What might a small business need to accept Grin in a fully non-KYC manner? At the very least a good Grin/BTC spot dex OR/AND liquid derivatives to hedge the exposure. So here we are with 3 possible solutions: (correct me if I’m wrong or forgot something)
- Atomic SWAPs
- Rust node running on the Cosmos VM
- GRIN&BTC Pegs on Tendermint exchange (similar to Binance DEX)
Atomic SWAPs
Sounds like a decent solution, but what I found up to date is a version with 12h lockup which is not acceptable. Can LN solve this?
Full rust node running on a VM (Cosmos)
Is it even possible to implement a decentralized Rust node acting as a collateral agent on the Cosmos network? Unfortunately, my current knowledge does not allow to answer this question.
Tendermint exchange
This seems to be the only practical solution available right now. If you could create a grin peg, I see two possible scenarios:
A. Run an exchange on the existing Cosmos network, with their fees and slow (for modern trading) block time: 7-8 seconds.
B. Fork Tendermint and create a new chain with 1-second block time specifically for Grin-related products. Pegs could be exchanged for real Grins and BTC through atomic swaps (as Binance DEX docs state). In this case, a 12-hour lockup will no longer be a big problem.
This particular solution looks very promising to me, but some important questions arise, such as: “Will there be enough incentives to run a validation node, assuming that they are paid with trading fees?”
Those are my thoughts. I’m not a blockchain expert but have a decent programming experience. Would like to contribute to this crazy industry. 