Subnostr

We should learn from the history of gold. Due to the physical limitations of gold, gold IOUs were used instead. And then the gold IOU became an early form of the dollar through the Bretton Woods system. The U.S. then stopped backing gold through the Nixon Shock with a lot of bullshit excuses.

It's impossible to accurately predict the future, but if no one pays attention, the same thing will happen again.

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HODLBurger 2y ago

I generally agree with your sentiment here but there is a difference between an IOU and an IOU that can be redeemed on chain unilaterally.

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Discussion

Gildong.Hong 2y ago

What is the meaning of 'unilaterally'?

If it means trustless trust, like LN-BTC, It is not an IOU. Unlike this, if some permissions are required, It is an just IOU what I'm talking about.

Liquid requires trust to redeem.

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HODLBurger 2y ago

Agreed, although in practice there's decent liquidity that doesn't require an official peg-out with liquid. Perhaps bitVM can give us a real trustees two way peg? Although it sounds over hyped as of now.