Leo Wandersleb on Nostr: Liquid is custody by one centralized, opaque group of functionaries with transparecy ...

Liquid is custody by one centralized, opaque group of functionaries with transparecy over your coins and their backing still being there - until it's maybe gone one day. But it has quite good privacy properties. The liquid blockchain does incur a moderate cost per transaction, making it unsuited for small payments.

ECash is custody by groups or individuals with no transparency whatsoever. A mint could award you a billion Bitcoin tokens without owning a single UTXO. But eCash has excellent privacy properties.

Lightning is unconfirmed UTXOs that can get replaced a million times without incurring an on-chain fee. Getting the right one confirmed is the tricky part which makes it inferior to on-chain UTXOs.

Lightning is what currently bridges between the three, allowing you to pay LN invoices with eCash or Liquid wallets.