Trustodial: An Ontological Dilemma
Briefly

Wallet of Satoshi's impending return to the U.S., powered by Lightspark's Spark system, has sparked criticism over its trust model. Spark operates on statechains, a Layer 2 system enabling off-chain UTXO transfers with inherent trust tradeoffs. Users must trust service providers to manage key material securely. While statechains allow users to reclaim funds independently, the necessary cooperation between users and operators around key generation complicates definitions of noncustodial wallets. Users have some control but may face challenges to unilaterally manage their funds without involving the operator.
Statechains, utilized in Wallet of Satoshi's Spark system, allow the transfer of entire UTXOs off-chain with trust tradeoffs as users depend on operators for key management.
The noncustodial nature of a wallet is defined by user control over funds without reliance on outside parties to facilitate transactions or regain access.
Read at Bitcoin Magazine
[
|
]