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prochronist
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2023-12-18 06:53:13

prochronist on Nostr: Liquid isn't a long-term scaling solution on its own (that's obvious), but ...

Liquid isn't a long-term scaling solution on its own (that's obvious), but federations can and will be part of the solution.

Many federations (both off-chain like Fedimint and on-chain like Liquid) will scale #Bitcoin alongside Lightning, which will play a key role as the connective tissue between different protocols.

There will be no 'one size fits all' scaling solution but rather a range of complementary protocols that cater to specific use cases and markets, each addressing different challenges with a unique set of trade-offs.

In July, I wrote about this and the importance interoperability will play within second layers and think it's even more relevant today with the discussions happening over the past week. Give it a read if you like.

https://blog.blockstream.com/increasing-interoperability-between-bitcoins-second-layer-protocols/
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