(Background: So unshielding fees were implemented. I thought this was good until I saw such excessive fees being charged. Someone challenged me saying they were not excessive…so I began a journey to understand how incognito works under the surface.)
I never looked into how incognito worked under the surface. I read quite a bit but incognito is a very complex project for me. I had always assumed that users store my funds, and stake PRV as an incentive to be honest. However, in my digging about fees, it seems it handles btc and eth very different, or rather it has to because btc isn’t programmable.
It seems that when shielding eth/etc20 a unique wallet address is generated. Once funds are received, tokens are swept into one single ethereum smart contract holding all the value. Do I understand that correctly?
BTC can not function this way. Instead it’s held by a custodian that had staked at least 150% the value of the btc. Is that right?
Are the custodians the node validators with their 1750 PRV staked? Does that mean that currently each can hold user funds up to say, 0.15 BTC of user funds?
Also, how are monero, BNB, and assets on the other chains stored?
EDIT: I had a lot more to say but it doesn’t matter if I don’t understand the foundation above.