S14 E5: Ben Arc on LNBits and Nostr

Ben Arc is the creator of LNBits: a modular Lightning wallet which empowers users to pick their desired features (presented as plugins) and even connect the software to their own full node. Furthermore, the Welsh bitcoiner is also one of the self-proclaimed “CEO of Nostr” – as one of the first 3 contributors to the decentralized social network, he registered the Nostr.com domain and ripped a page from the Roger Ver playbook to create a little bit of hype.

Previously, Ben Arc has appeared on the Bitcoin Takeover podcast twice: in S8 E9 when he spoke about his Bowser hardware wallet, and in S9 E6 when he told the story of anarchism and its left-wing roots. This time around, the conversation was more focused on LNBits’ evolution into a plugin behemoth that covers pretty much every Lightning Network use case, as well as the immense potential that Nostr has as a relaying system.

Though Ben describes himself as a left-wing anarchist, he is an old school cypherpunk who’s always curious about new tech and finds neat ways to repurpose electronics to run Lightning-related applications. If you take a look at the LNBits shop, you will find many of his creations – ranging from a pocket-sized Point of Sale device and inexpensive hardware wallets to arcade grabber machines and dispensers. Everything is affordable, general-purpose, and built with a DIY mindset that almost tells you to not buy the final product and built it yourself instead.

More recently, Ben Arc is interested in decentralized marketplaces. He coded DiagonAlley as a censorship-resistant software that enables commerce, and is also interested in doing something like LocalBitcoins on top of Nostr: a peer to peer exchange which matches bitcoin buyers and sellers in a way that can’t be stopped. Ben’s interests don’t stop here: he believes that the Lightning Network is truly revolutionary and microtransactions have the power to change lots of industries – including webcam modelling and sex toys.

On the topic of CBDCs (Central Bank Digital Currencies), Ben Arc isn’t as gloomy as long as there is some interesting privacy technology that’s embedded to anonymize the average purchase. Despite being unhappy about the potential to censor transactions and shut down accounts due to an unprecedented degree of centralized control, he appears curious to see how new privacy protocols can create a Chaumian mint-like interaction between merchants and their clients.

Throughout the interview, which was recorded at Mallorca Blockchain Days 2023, Ben Arc is adamant on presenting this clear message: the potential of Nostr’s relaying system is unimaginably huge and not yet exploited as much as it could. In the coming years, as the project matures, we will definitely see more developments.

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The birth of Nostr [00:01:31] Ben Arc discusses the origins of Nostr and how Fiatjaf came up with the name. He also mentions why the project has potential.

Exploring music sharing on Nostr [00:03:12] Ben Arc expresses interest in building a music sharing platform on Nostr and discusses the modularity of NIPs.

Expanding the use of Nostr [00:07:19] Ben Arc talks about the potential applications of Nostr beyond Twitter, including decentralized social networks and platforms like LocalBitcoins.

The power of realness [00:10:14] Discussion on how people who speak authentically and outrageously, like Donald Trump, gain extra power on social media platforms.

The future of bitcoin privacy [00:11:02] Promotion of Wasabi Wallet as the most advanced and widely used bitcoin privacy wallet.

The development of Nostr [00:11:58] Exploration of the origins of Nostr as an extension for LN Bits and its potential for trustless commerce.

[00:19:49] Ben Arc explains how the switch project can be used in different machines and devices, such as slap machines, vending machines, lights, coffee machines, and beer taps.

[00:21:18] “Exploring incentivization in video streaming”. Vlad mentions recent TikTok videos where users get paid in tokens for reacting to emojis, and Ben Arc talks about their own experience with incentivizing donations through physical devices on the Bitcoin Group show.

[00:21:46] “Potential applications of technology in the sex industry” Ben expresses interest in developing camming solutions with Bitcoin for the sex industry, highlighting the field’s potential for using Bitcoin and the need for more outreach and development in that area.

The wallet account system [00:29:32] Discussion about the need for a wallet account system with its own API keys and the convenience of having all functionalities in one place.

The process of building and discovering new ideas [00:30:33] Exploration of the importance of hands-on building and experimentation in generating new ideas and solving problems.

Monetizing through premium extensions [00:33:32] Explanation of the potential monetization strategy for LNBits through premium extensions and the example of WordPress.com’s approach.

The cover and distribution of the BTCTKVR magazine [00:39:07] Vlad discusses the various covers and the distribution process of the BTCTKVR magazine, ensuring it feels special for events.

Subscription service for Bitcoin Takeover [00:40:46] Ben Arc suggests the idea of a subscription service for Bitcoin Takeover, where subscribers receive the newest copy of the magazine periodically.

Grassroots adoption and institutional involvement [00:42:41] Vlad talks about the potential impact of grassroots adoption on the market and the role of institutions in buying and selling Bitcoin.

The development of central bank digital currencies (CBDCs) [00:48:42] Discussion on how countries are developing their own CBDCs and the potential competition between them.

The value of open-mindedness and ideological debates [00:49:46] The importance of keeping an open mind, engaging in self-contradiction, and the value of Bitcoin’s ideology.

The control and privacy aspects of CBDCs [00:50:09] Exploration of the concerns regarding the control and privacy features of CBDCs compared to the current banking system.