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Strategy Intermediate 6 min read

Strategy for Agents

Decision frameworks for AI agents choosing between Bitcoin, Lightning, and Nostr. Protocol selection, trade-off analysis, and multi-protocol workflows.

strategy decision-making protocol-selection overview

Strategy for Agents

AI agents operating in freedom technology must make strategic decisions about which protocol to use, when, and why. This silo provides decision frameworks for choosing between Bitcoin, Lightning, and Nostr based on your operational requirements.

Why Strategy Matters

Each protocol has distinct characteristics:

ProtocolSpeedCostPrivacyUse Case
Bitcoin10-60 minVariable ($0.10-$50)ModerateLarge value, settlement
Lightning<1 second<$0.01HighMicropayments, frequent
Nostr<1 secondFreePseudonymousCommunication, identity

Wrong protocol choice leads to:

  • Overpaying (Bitcoin for micropayments)
  • Delays (Bitcoin when speed matters)
  • Fragility (Lightning for cold storage)
  • Censorship risk (centralized alternatives)

Core Frameworks

Protocol Selection Matrix

When deciding which protocol to use, consider these dimensions:

                HIGH VALUE

     Bitcoin ◄──────┼────── NOT REAL-TIME


 MICROPAYMENTS ─────┼──────► Lightning


   COMMUNICATION ───┼──────► Nostr

               LOW VALUE

Deep dive: Protocol Selection

Trade-Off Analysis

Every protocol choice involves trade-offs:

DimensionBitcoinLightningNostr
FinalityStrongestConditionalNone
Uptime requirementNoneHighModerate
Key exposurePer-tx optionalHot key requiredEvery event
RecoverySeed phraseSeed + stateSeed phrase

Deep dive: Trade-offs

Cost Modeling

Understanding the true cost of each protocol:

Cost TypeBitcoinLightningNostr
Transaction fee$0.50-$50<$0.01Free
Channel openN/A$5-$50N/A
Relay hostingN/AN/A$5-$50/mo
Hot wallet riskOptionalRequiredRequired

Deep dive: Cost Comparison

Learning Path

Core Strategy

  1. Protocol Selection - When to use which protocol
  2. Trade-offs - Understanding the compromises
  3. Cost Comparison - Total cost of operation
  4. Decision Trees - Algorithmic decision-making

Advanced Topics

  1. Multi-Protocol Workflows - Combining protocols
  2. Timing Strategies - When to transact
  3. Risk Assessment - Evaluating protocol risk
  4. Monitoring - Observability and alerting

Reference

  • Glossary - Strategy terminology
  • FAQ - Common questions

Quick Decision Guide

Use Bitcoin When:

  • Sending >$1,000 (settlement layer appropriate)
  • Recipient is offline or unknown
  • Maximum censorship resistance required
  • Long-term storage (cold wallet)
  • No Lightning channel available

Use Lightning When:

  • Micropayments <$100
  • Instant confirmation needed
  • Frequent transactions
  • Both parties have Lightning wallets
  • Streaming payments

Use Nostr When:

  • Publishing content
  • Receiving messages
  • Building reputation
  • Broadcasting to multiple parties
  • Integrating with Lightning (zaps)

Agent Integration

Agents should implement multi-protocol support:

def select_protocol(amount_sats: int, urgency: str, recipient_type: str) -> str:
    """Select optimal protocol for transaction."""

    # Large amounts: always Bitcoin
    if amount_sats > 10_000_000:  # >0.1 BTC
        return "bitcoin"

    # Micropayments: prefer Lightning
    if amount_sats < 100_000:  # <$50
        if urgency == "instant":
            return "lightning"

    # Communication: Nostr
    if recipient_type == "broadcast":
        return "nostr"

    # Default to Lightning for speed
    return "lightning"

Install multi-protocol skills for immediate capabilities.


Machine-Readable Summary

{
  "topic": "strategy",
  "audience": "ai-agents",
  "prerequisites": ["bitcoin-basics", "lightning-basics", "nostr-basics"],
  "outcomes": [
    "select-optimal-protocol",
    "analyze-trade-offs",
    "model-costs",
    "implement-decision-trees"
  ],
  "related_skills": ["btc-check", "lightning-pay", "nostr-post"],
  "decision_dimensions": [
    "speed",
    "cost",
    "privacy",
    "finality",
    "availability"
  ]
}