I was being factitious.
The information is on there site. If you can parse through the BS and extrapolate
They just never plainly call #Lbtc a #altcoin.
They use terms like "peg in/out" instead of "exchange" to deliberately deceive people.
Lbtc is not Bitcoin. It is a shitcoin pegged to the price of Bitcoin. And no one has sufficiently explained otherwise.
What do you think of this? ⬇️
https://blockstream.com/assets/downloads/pdf/liquid-whitepaper.pdf
I think it plainly explains exactly what I am saying. When it defines "#peg in".
The part that really scars me:
"Anyone that is running the #Liquid client is able to create a peg-in of Bitcoin to the Liquid
network, although only federation members are able to peg-out."
- direct quote from there own white paper.
Can't run on that #bank without permission. . .
We tell people that are new to Bitcoin to stay away from shitcoins so they don't get burned. And then we serve them this.
Hah, it’s not an altcoin, that’s a first.
It’s a 1:1 BTC peg/IOU - you lock up BTC in a 15 member multisig (similar to the Fedimint model) and unlock L-BTC for increased confidentiality and speed.
These Federation members are geographically dispersed and also run physical, custom hardware security modules (HSMs) attached to host servers (known as functionaries) to make them tamper proof.
Liquid doesn’t take away from Bitcoin network effects (like DOGE or other shitcoins) because it uses Bitcoin as its native currency. It actually does the opposite, it furthers hyperbitcoinization by allowing for Bitcoin to be a settlement currency for capital markets and assets like digital securities - see the El Salvador Volcano bond that is planned.
Liquid was also the first Bitcoin sidechain built by OG Bitcoin Core devs and continues to be 1:1 parity at all times with Core, unlike many alts or even other “L2s” like Rootstock, which is built on ETH and legitimizes scammy altcoins.
As you should know, everything is a trade off with Bitcoin, which is fully permissionless and decentralized. In a hyperbitcoinized world, where most retail txs will be on L2, it’s important to understand each and how you should ideally apply them to your stack.
Personally use Lightning for fast, small, low-cost micropayments with friends and Liquid for confidential, secure medium and large transactions (esp when trading, lending) or midterm hodling. Use both to save on fees.
Here’s a fair breakdown between bitcoin and other L2s and custody solutions:
Security: Bitcoin > Liquid > Lightning > Exchange
Trust/uncensorable/unseizable: Bitcoin > Lightning > Liquid > Exchange
Confidentiality: Liquid > Lightning > Bitcoin
Speed: Lightning > Liquid > Bitcoin
It is a really cool 😎 altcoin.
Saying it's the same as Bitcoin is the same as saying usdt (or usdc) is a dollar.
There is certainly value in the tradeoffs. I'm not denying that.
But Lbtc is not Bitcoin. The Bitcoin exists in the federations multisig wallet. The Lbtc is a receipt for that Bitcoin.
We talk about tradeoffs of trust;
I trust a Kabal of multinational corporations with my Bitcoin as much as I trust a bank with my dollars.
The reason why anyone can peg in but only members can peg out is because they need to control the possibility of a run on their Bitcoin-bank.
How much would I trust liquid? About a months salary. (My same level of trust for a legacy bank.
