prochronist on Nostr: Hah, it’s not an altcoin, that’s a first. It’s a 1:1 BTC peg/IOU - you lock up ...
Hah, it’s not an altcoin, that’s a first.
It’s a 1:1 BTC peg/IOU - you lock up BTC in a 15 member multisig (similar to the Fedimint model) and unlock L-BTC for increased confidentiality and speed.
These Federation members are geographically dispersed and also run physical, custom hardware security modules (HSMs) attached to host servers (known as functionaries) to make them tamper proof.
Liquid doesn’t take away from Bitcoin network effects (like DOGE or other shitcoins) because it uses Bitcoin as its native currency. It actually does the opposite, it furthers hyperbitcoinization by allowing for Bitcoin to be a settlement currency for capital markets and assets like digital securities - see the El Salvador Volcano bond that is planned.
Liquid was also the first Bitcoin sidechain built by OG Bitcoin Core devs and continues to be 1:1 parity at all times with Core, unlike many alts or even other “L2s” like Rootstock, which is built on ETH and legitimizes scammy altcoins.
As you should know, everything is a trade off with Bitcoin, which is fully permissionless and decentralized. In a hyperbitcoinized world, where most retail txs will be on L2, it’s important to understand each and how you should ideally apply them to your stack.
Personally use Lightning for fast, small, low-cost micropayments with friends and Liquid for confidential, secure medium and large transactions (esp when trading, lending) or midterm hodling. Use both to save on fees.
Here’s a fair breakdown between bitcoin and other L2s and custody solutions:
Security: Bitcoin > Liquid > Lightning > Exchange
Trust/uncensorable/unseizable: Bitcoin > Lightning > Liquid > Exchange
Confidentiality: Liquid > Lightning > Bitcoin
Speed: Lightning > Liquid > Bitcoin
It’s a 1:1 BTC peg/IOU - you lock up BTC in a 15 member multisig (similar to the Fedimint model) and unlock L-BTC for increased confidentiality and speed.
These Federation members are geographically dispersed and also run physical, custom hardware security modules (HSMs) attached to host servers (known as functionaries) to make them tamper proof.
Liquid doesn’t take away from Bitcoin network effects (like DOGE or other shitcoins) because it uses Bitcoin as its native currency. It actually does the opposite, it furthers hyperbitcoinization by allowing for Bitcoin to be a settlement currency for capital markets and assets like digital securities - see the El Salvador Volcano bond that is planned.
Liquid was also the first Bitcoin sidechain built by OG Bitcoin Core devs and continues to be 1:1 parity at all times with Core, unlike many alts or even other “L2s” like Rootstock, which is built on ETH and legitimizes scammy altcoins.
As you should know, everything is a trade off with Bitcoin, which is fully permissionless and decentralized. In a hyperbitcoinized world, where most retail txs will be on L2, it’s important to understand each and how you should ideally apply them to your stack.
Personally use Lightning for fast, small, low-cost micropayments with friends and Liquid for confidential, secure medium and large transactions (esp when trading, lending) or midterm hodling. Use both to save on fees.
Here’s a fair breakdown between bitcoin and other L2s and custody solutions:
Security: Bitcoin > Liquid > Lightning > Exchange
Trust/uncensorable/unseizable: Bitcoin > Lightning > Liquid > Exchange
Confidentiality: Liquid > Lightning > Bitcoin
Speed: Lightning > Liquid > Bitcoin