this paper will be highly controversial, but it is necessary to explain and clarify these concepts, especially to the general public.

CUSTODIAL: for some reason you are abdicating responsibility for your own resources. This behavior is considered a flawed approach for many good reasons in the crypto world.

And truthfully… they’re right.

The motto to follow is “NOT YOUR KEYS, NOT YOUR COINS”.

Therefore, I will paradoxically warn you in advance… never trust anyone in the crypto world !!! You must be extremely paranoid and approach everything with skepticism.

NON-CUSTODIAL: this is the right approach !!! You hold “the keys in your own hands”. Any coin is ruled only by YOU AND NO ONE ELSE.

Your county boss, tax officials, politicians , the president of the globe… it doesn’t matter what “authority” you want to send to hell, the crypto under your control will allow you to do this !!! by definition …

So….a HYDRA is… CUSTODIAL !!!

which begs the question : why ????

Like everything in the world, the issue of custodial vs non-custodial is not a black and white problem, but rather an extremely broad spectrum of problems and their solutions.

Therefore, classic life situations require “specific” solutions, which we will describe. The non-custodial part of the spectrum of this problem obviously requires your proactive approach. Are you the owner of a HW wallet (I personally recommend Trezor) , do you try to keep your mobile phone free of spyware, do you have a good LN wallet installed, etc. …. according to the recommendations of your friends — depending on who advises you what on Facebook 😀 .. well, you know what I mean…

and now imagine you want to cash out in LN because it’s cheap and fast (everyone says), but :

you are an entrepreneur, you have operations and :

• you have outlets all over the world
• you have multiple outlets in a city
• you have both e-shop and brick-and-mortar sales
• you have sales in different time zones

you have many different products

• each is priced with a different formula
• each in a different currency

physical security problem

• risky customers or visitors
• transfer of proceeds to the depository
• counting cash

you want it to work automatically, even when you’re asleep.. whatever it is

you are not an IT whiz and you don’t know how to configure your own NODE (if you don’t know what I’m talking about, you are a future HYDRA client 🙂

you don’t know and don’t want to worry about another box in the company ( it just beeps and whirs anyway)

it doesn’t tell you anything at all about channel building and channel management 😀 ( calm down , it doesn’t even tell many IT people)

IT security is a dirty word for you

or just “crypto” is “cool” but “I’m a specialist in another field and I don’t have time to devote much time to this”

And… a million other reasons

well.. and this is exactly the type of people HYDRA is here for … HYDRA is HYDRA.. it has many heads and each one thinks of a different aspect of this issue… you simply exchange part of your crypto sovereignty for the service of its ugly body .. that’s why it’s CUSTODIAL SERVICE !!!

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Original Link:

https://medium.com/@lionluck/en-07-custodial-vs-non-custodial-1f608db4d502