Replying to Avatar Justin

nostr:npub1jg552aulj07skd6e7y2hu0vl5g8nl5jvfw8jhn6jpjk0vjd0waksvl6n8n

forgive me for what is probably a stupid question from a novice.

how much #trust is involved in to #liquid BTC other liquid assets?

I know I can get my Bitcoin back from lightning then an adversarial environment because I have the ability to close the channels myself.

hypothetically, if State actors applied enough pressure for liquid nodes + functionarys to shut down can I get my Bitcoin back yes or no?

if yes, can you explain to a 12-year-old how to do it?

1) censorship: selective action like the ability to censor a certain UTXO on Liquid is mathematically impossible because you can't even identify outputs due to confidential transactions (which blind asset and asset type). They would need to know the UTXOs beforehand and even then you wouldn’t lose coins, it would just fail and you’d try again with a diff UTXO.

2) state: Liquid is resilient because the federation members (who custody the BTC multisig) are in multiple jurisdictions across the world and run physical HSMs, you literally have to go in-person to commandeer them and turn off. There’s also the Dynamic Federations upgrade last year which allows the Federation to add/remove entities to be able to peg-out (without them having to run functionaries/have HSMs), so in the event of a real globally coordinated state attack, there would be more options to peg out.

Hope this helps.

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Actually,

It dose help me understand the level of trust in this alt-coin.

Thank you.

Hehe, welcome