Replying to Avatar btconboard #LNHANCE or #CTV

The struggle is Liquid is not Bitcoin. It’s a multisig with a completely separate blochain and a hope that you can get actual Bitcoin out when you ask, and the fact that you have to ask is the key problem. Lightning you do not. Doesn’t mean Liquid is evil, but people need to understand you can easily be rugged.
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Cyph3rp9nk 1y ago

I totally agree with your words, however, the liquid structure is much safer than having bitcoin in an exchange, even from the point of view of suffering a catastrophe and losing funds is safer liquid than lightning.

You just have to understand the trade-offs and use it as a kind of cache.

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btconboard #LNHANCE or #CTV 1y ago

I don’t think that is accurate. Lightning you hold keys to actual Bitcoin and can always unilaterally force it back to the Bitcoin base chain. Liquid you have no actual Bitcoin keys. You cannot force on chain. You have to ask permission to go onchain. You have an IOU on a totally separate and unrelated blockchain that federation can refuse to honor at any time. I don’t think that is more secure or more protective of loss.

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BOL 1y ago

Good convo! Liquid s centralization could become a risk , if and when it actually had heavy usage (not least because of recent gov actions...)