Replying to Avatar Maxim

It is the process of „burning“ L-BTC held by on Liquid sidechain to release the equal amount of mainchain BTC. Currently this can be only be done by a Liquid federation member, which implies some trust in the federation.
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2Pac 2y ago

You can do a swap instead of pegging out

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Maxim 2y ago

True. For you as a single use the problem is not that big: there are good swap services. But globally the problem remains unsolved.

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2Pac 2y ago

It will never have the same trustless of layer 1, it’s the trade off for lower fees and privacy.

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Maxim 2y ago

It won’t. But it can be improved either by reforming the federation or by allowing Liquid nodes to peg out (same way you can force close a LN channel on your node).