Let us do a bitcoin side channel with current technology

Let us do the travel coin, a Btc par coin used by international travelers.

We can use existing technology, the standard credit/debit card that takes all transactions back to the S&L site, instantly.  Travel goods are delivered much after the order, hotel and flights are booked in advance, so checking for fraud on the large ticket items is a bit easier, 'card not present' errors minimal.

But we have a bitcoin credit card and a standard S&L denominated in bitcoin.  What is the purpose of the S&L? It is a signal to suppliers and demanders, it is, in fact, the two isomorphics to the typical buyer and seller networks, when viewed as constricting channels.  It tells the tourist to plan as if their budget calculator has five bits.  The S&L is running with a 3% bit error variance, telling everyone that their prices are normalized five digit numbers.  The result is that the traveler makes it through the trip and never says, 'Frig, what a nightmare'.

Travelers  check their own bit coins in for a travel coin S&L account, at par.  After they are done travelling for a while, they check their bitcoins out under their address. Note. They convert travel coins to personal Btc at par, but may take relative  gains or losses in the S&L compression.  Remember, the travel coin is allowed to go bankrupt, leaving a batch of travelers stranded.

The industry is doing this, now. It is not waiting for fully secure element, and it knows that one is coming anyway. A trillion dollar market, a perfect fit for bitcoin, the official central bank neutral coin.

We might note that the S&L tech that drives the system is a great source of investment capital for the travel suppliers.  It becomes clear, to the pit boss, that the account has over restricted demand, the loan to deposit accumulation provides credit score.  The service provider can go ahead and order capital improvements.

These side chains almost all have a separate processor banks to manage deal flow for very high volumes. The are accurate, fast. Just say 'Redneck compatible', everyone knows what that is.