Nostr Web Client

I want to talk about #Liquid

I appreciate what nostr:npub1jg552aulj07skd6e7y2hu0vl5g8nl5jvfw8jhn6jpjk0vjd0waksvl6n8n is attempting to do, and I can definitely see the benefits of Liquid for businesses

However, I think there are two major reasons why Liquid is not seeing much adoption with plebs:

1. There are only 15 "functionaries" that are able to peg you out. I understand this is a technical issue, but still very centralized.

2. Liquid offers "confidential transactions", but this is much different than "private transactions". Confidential means Liquid "hides both the type of assets and amounts that are transacted", but according to the website:

"The addresses of senders and receivers further remain visible as well and can be retraced like on the Bitcoin blockchain."

This means the government can still track payments, so Liquid wouldn’t help much if we need to support Canadian truckers.

Liquid is a great legal business, but the argument to "just use Liquid" for cypherpunk money is not good advice.

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Discussion

CitizenPleb 2y ago

I have never seen a need for it. Once I need it, maybe I’ll use it?

BTCapsule 🏴 2y ago

I don’t think there is much need for plebs to use it. Liquid doesn’t actually provide private transactions like Monero, which makes sense because it’s a legal business.

The Daniel ⚡️ 2y ago

We already have the tools we need. I’m not interested in random sidechain stuff or another place to park sats.

BTCapsule 🏴 2y ago

Eventually we’ll have to park our sats somewhere else for Bitcoin to scale. It could be a L2 solution like lightning or Liquid, so we have to think about which path we’d like to go down. Have you read this scaling article by James O’Beirne?

https://delvingbitcoin.org/t/thoughts-on-scaling-and-consensus-changes-2023/32

🤦🏼‍♀️ 2y ago

> Eventually we’ll have to park our sats somewhere else for Bitcoin to scale.

this seems like the shittiest timeline.

Disturbia 2y ago

it will work more like a money in the bank. its not aiming for true privacy but just for those uncomfortable that their balance can by peered by anyone via the explorer. and for transaction fees that is not too heavy.

MKD Podcast 2y ago

how long have you been researching Liquid?

i have been using it daily for about 2 years. i even find it useful to break chain of custody links for DCA bitcoin like a coinjoin

BTCapsule 🏴 2y ago

I’ve been hearing a lot about Liquid from the drivechain discussion, and decided to dig a little deeper.

I’ll need to look a little deeper into breaking KYC custody. I’m not really sure it’s possible, but could be a potential use case.

MKD Podcast 2y ago

drivechains are attempting to steal the show from better options like Liquid, its really just that simple. happy hunting on your path of discovering Liquid.

Saberhagen The Nameless 2y ago

Your privacy on Liquid is mediocre, transaction graph is visible, and your anon set is like 3 people.

Disturbia 2y ago

park

saeed 2y ago

The last time I read about Liquid was some year ago, in that time only Coinbase exchange existed for peg-out Bitcoin and KYC was mandatory.