I go out of cash app with lightning. I run a lightning node but tbh it's too much work to manage channels and liquidity, it's slow and inconsistent to make successful payments. Do I use alby primarily. But that's custodial. So I only keep 500k there. So what do I do when the balance goes over that when I go out of cash app via lightning? I use atomic swaps to put it in liquid. Where the sats stay in purgetory, self custodied with my same 12 words as my normal hot wallet except my liquid requires 2FA to make a tx. It's a better security model. My cold storage is if course main net. There is no wallet. Those 12/24 words only exist on a steel plate in my safe. When my liquid wallet holds more than a certain amount, I peg put to cold storage where they will sit until I give some of those UTXOs to my children. Liquid offers a reasonable degree of privacy through all this as well.
Discussion
Very interesting... it's like your using it as a semi-cold wallet, with better privacy and security. Still trying to wrap my head around how federated payments will play out on bitcoin
Yes exactly. I also have a limit my liquid wallet to 5 million sats at the moment. There is a degree of trust with a federation. The chances of a rug happening is extraordinarily low. A super majority of the liquid federation would have to conspire and there's no incentive to do so as it would ultimately just break the peg and send liquid to the grave. But the tradeoff I get is having access to 5 million sats that can be moved for a fraction of what main net costs at 10x the speed, that I can self custody without running a node, requires my 2FA and has confidetial txns. Lots of benefits to that trust tradeoff...
When main net fees shot up for ordinals it affected me none at all. I had 5 million sats on hand I could move around for hundreds of sats.
Thanks for taking the time to make a case for Liquid as a reply to a joke thread.
This is what nostr's all about!
I came in agreeing with the premise of the article because I have never heard of anyone actually using Liquid, and I came out with useful information that has shifted my perspective.