Replying to Avatar Cyph3rp9nk

#[0]​ Don't waste your time with scamourai people. They are short sighted, they don't see beyond coinjoin, your reasoning is right, Satoshi already knew that L1 was not scalable and it has to stay that way if we want Bitcoin to remain decentralized.

Scamourai only looks after their business, coinjoin fees, and believe me, they are screwed, privacy has been happening for a long time now in layer 2, by default and cheaper than in layer 1, like Liquid, Lightning, BOLT12, Ark (we will have to see what it is capable of) or even in layer 3, Cashu, Fedimint.

Know the tools and use them according to the context.
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Maxim 2y ago

After a deeper read on Liquid implementation and Cashu and listening to #[3]​ podcast with Adam Back, the whole Whirlpool debate started looking entirely artificial and out of place. Liquid still has to solve the „peg out“ problem imho as it is very suboptimal. But once they’ve solved it, it is gonna be a killer feature.

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VOLKER - Voice Of Logic Knowledge Experience & Responsibility 2y ago

What is the "peg-out problem"?

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Maxim 2y ago

It is the process of „burning“ L-BTC held by on Liquid sidechain to release the equal amount of mainchain BTC. Currently this can be only be done by a Liquid federation member, which implies some trust in the federation.

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2Pac 2y ago

You can do a swap instead of pegging out

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Maxim 2y ago

True. For you as a single use the problem is not that big: there are good swap services. But globally the problem remains unsolved.

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2Pac 2y ago

It will never have the same trustless of layer 1, it’s the trade off for lower fees and privacy.

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Maxim 2y ago

It won’t. But it can be improved either by reforming the federation or by allowing Liquid nodes to peg out (same way you can force close a LN channel on your node).

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VOLKER - Voice Of Logic Knowledge Experience & Responsibility 2y ago

I see. So it's not a technical problem, more of a design tradeoff that's not to your liking.

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Maxim 2y ago

Correct. More of a conceptual & design problem that can be resolved in practice, while the whole Liquid thing will certainly always be a trade-off.

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Cyph3rp9nk 2y ago

Is this the last podcast with Jack Mallers?

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Maxim 2y ago

Yes, this one.

https://www.youtube.com/live/20cM_TJ595Q?feature=share

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Cyph3rp9nk 2y ago

Thanks!!!

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Maxim 2y ago

Much to my embarrassment, I didn’t know well enough who Adam Back actually is, his background and that he holds a PhD in computer science🤦‍♂️🤦‍♂️🤦‍♂️ Now I know.

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2Pac 2y ago

He is cited in the white paper for Hashcash

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Cyph3rp9nk 2y ago

And one of the original cypherpunks...inventor of hashcash, the proof of work...and a possible candidate or collaborator of Satoshi....

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VOLKER - Voice Of Logic Knowledge Experience & Responsibility 2y ago

And also the guy who printed a perl implementation of a cryptographic algorithm on a T-shirt and crossed the borders of the US, demonstrating that categorizing algorithms as munitions was against 1st amendmend. Clinton reclassified cryptography a few years later.

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Maxim 2y ago

Wow, didn’t know that part of his biography 😂🫡