Lightning is fantastic. Although running your own node and channels are probably beyond most people’s abilities right now. Solutions such as Liquid Network will need to be used even though it’s not self sovereign.
Discussion
For the people reading and following could you describe the key difference between Liquid and Lightning network?
I am using Aqua wallet for smaller amounts. Liquid is a side chain using a federation model with a 11 of 15 multisig. You can swap BTC in for Liquid BTC. Once there you can send either via the liquid network or via lightning. It’s not self custody but having a 11 of 15 multisig makes it safer than trusting just one entity. I think of the “easy” options for using lightning it’s a reasonable one. I also use Strike, however, I am trusting my BTC with just one entity. Of these options I would not leave more than a smaller amount of BTC on them. Running a node and managing your own channels is the best way but may be too technical for mass adoption. I run my own node and opened my own channel. I use Zeus as a wallet option. It wasn’t an easy task setting it all up.
Cool thanks for sharing! Maybe Liquid and lightning make sense for small amounts and daily purchases, definitely not to hodl ☝️😜
Liquid uses a separate blockchain and bitcoin is locked when it is swapped into a liquid token which uses a two way peg to maintaib parity. Transactions take place using liquid's...'alt'...coin environment. When you cash out to on chain, the liquid network unlocks the coin to the address you specify, doing away with the token. The whole network is managed by a trusted Federation with a high degree of centralization. It does also work with things other than Bitcoin.
Lightning involves channels. Btc is locked in a channel with a ywo of two multisig wallet. The nodes on this channel have channels with other nodes. They transact across these interconmected channels. When the channel is closed, they net out the total transactions and do a single on chain transaction, instead of one for each transaction done on the lightning network.
I think I'd go with Cashu over liquid, if i felt the need to use something beyond Lightning. I haven't run into liquidity concerns, and with fees where they are, anything that I imagine would run into some isn't that big a deal to do on chain. Liquid seems like just another shitcoin; haven't seen a reason why it is any better than say, wBTC or any of the the other tokenized bitcoin options out in shitcoin land.
For mass adoption of Lightning, easy solutions will need to be made available. I am using Strike as well as Aqua wallet. I also use Zeus and run my own node and channel. Running nodes and channel management is not for everyone. As much as it’s not liked by many, solutions like Liquid will need to be accepted for mass adoption. Not everyone can run nodes and manage channels. It will get easier I am sure but right now it’s not.