An alternative to on-chain #coinjoins for #Bitcoin privacy - Peg-out to Liquid Network - take advantage of confidential transactions - then Peg-in back to on-chain in a quick and low cost way. A LIQUID WHIRLPOOL. Any drawbacks to this method? I did a test and appears impossible for 3rd party to follow the flow between network hops. only cost an onchain fee and 0.25% peg-in/out fee and you could set whatever denomoniation you desire. #BTC #LBTC #LiquidNetwork #Blockstream #whirlpool
if there's only 3 transactions per block, how much obfuscation do you think you're getting?
in doing some more research. I found that privacy is not perfect on liquid network. as mentioned in comments, there are very few transactions in each block. and even the transaction amounts and asset types are hidden you could still follow utxo paths and make assumptions on them. ideally we need to see coinjoins added to layer2s like liquid to help add privacy on a lower fee layer. #bitcoin #BTC #privacy #Liquid #LBTC #coinjoins
