To be considered a Bitcoin layer, you have to be able to trustlessly settle back on chain
That's why liquid is not a layer two, and certainly custodians aren't a layer
Imho
Discussion
Whenever someone asks me about what do I think about liquid as a layer 2, I always have to reply, I don't think about it because it's not a fucking layer 2.
based.
Liquid/Cashu/Fedimint are all cool and have use cases but dont meet that criteria!
So are you saying there is no layers to the US dollar? There's only the central bank for the USD as an actual layer and everything else are just custodians?
Correc
That’s a good point… the ability to settle onto the main chain with out restriction is a must if it is meant to be an extension of the core principles of Bitcoin (and being called a layer 2 or 3 of Bitcoin definitely implies that).
What is a better word for something like the liquid chain? I almost want to call it a “synthetic layer”… but maybe there is already a better name out there I haven’t heard about yet.
