FAQ

Does the service provide access to its node? If so, can the server admin theoretically steal my bitcoins?

Yes, “fiat” channels are managed by the Standard Sats project by default and the service administrator can steal your bitcoins. You can install the software on your server to administer it for yourself.

How is it different from stablecoins?

Stablecoins are usually issued by a centralized issuer. In the case of Tether, it is a Panama bank. They are fiat money guarantees that require the trust of the issuing bank. While the synthetic assets in a broad sense do not have a centralized issuer.

What is the probability that my assets will be stolen if the exchange is hacked? What are the guarantees? Are there precedents?

Any tokens stored on an exchange are subject to the risks of hacking or bankruptcy of the exchange. In general, this is called counterparty risk. Unfortunately, you cannot use the capital markets that exchanges provide without this risk. Assess your risks yourself by deciding to install software and open a personal account in exchange for its operation. Alas, in the more than 10-year history of the existence of Bitcoin, we can count many precedents for hacking and bankruptcy of exchanges.

Who is behind the project?

The founders are developers Ilya Evdokimov and Anton Gushcha, who created a product prototype in November 2021 as part of a banking hackathon. The development of the project is self-funded. You can send donations to our Geyser campaign.

How does a node administrator make money?

By installing the Standard Sats software, the user becomes the host administrator and can earn routing fees in the Lightning network. However, Standard Sats is not responsible for the actions of the user or the exchange used for hedging. Also, payment routing income is not guaranteed.

Are there any usage examples?

Yes. As of May 2022, the project has been deployed in MonteLibero community.