> pay someone a tiny fee to monitor the blockchain
A.k.a trust a third party.
> For most people, using a 3rd party custodial solution for their low balance hot wallet seems to be the norm.
Just like Venmo or PayPal?
A.k.a trust a third party.
> For most people, using a 3rd party custodial solution for their low balance hot wallet seems to be the norm.
Just like Venmo or PayPal?
*Bitcoin Cash enters the chat*
True, but in a very limited sense. You're trusting a third party to protect you from your counterparty posting an out of date state. And adding further complexity, your counterparty gets punished if they get caught publishing this state, and they have no way of knowing if you are watching or not.
So, from a game theory perspective, it is unlikely for this to even come into play.
Oh, and you can technically have multiple third parties doing this.