The Emerging Bitcoin Modular Ecosystem

The article argues that Ethereum's modular approach, which spreads activity across many separate blockchains, fragments users and developers and weakens interoperability, while Bitcoin's emerging modular stack, built on Lightning with Cashu, Fedimint and Nostr, aims for more open, permissionless interaction. It cites Mutiny as an example that connects to Nostr relays, Fedimint federations and Lightning Service Providers, and it notes risks such as LSP capital requirements, ecash mint regulatory and fraud concerns, and Nostr relay centralization. It says multiple Lightning companies are collaborating on a specification that would let any market actor implement its own LSP.