Why didn't Liquid adopt the Monero model? Because then it would be impossible to guarantee 1LBTC=1BTC.
You are free to create a sidechain with the Monero model and back it with Bitcoin.
I challenge you to do so, and you will discover what hidden inflation is.
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Replies (8)
Liquid doesn't have permissionless exit so isn't a true sidechain.
Hidden inflation risk comes from cryptographic assumptions via confidential transactions (which Liquid also has).
You don't know what you're talking about.
he's the "ring signatures cause supply inflation" guy 🙄
what do you expect?
I retweet this for educational processes.
This man doesn't have a clue what he is talking about. He's one of the last standing maxis and if you are following this man without doing your own research you'll end IP at places where you never wanted to go in the first place. I am calling him out for misguiding people.
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He has all three of us muted lol this is insane. Hopefully lurkers reading our counterarguments are verifying our claims and thinking for themselves.
That is the primary reason I have these conversations.
The assertion about "hidden inflation" in a Monero-based sidechain is technically flawed.
Monero's Confidential Transactions (CTs) use cryptographic zero-knowledge proofs (specifically range proofs) to ensure that transaction inputs equal outputs, mathematically preventing the creation of new tokens during the transfer process.
Therefore, the internal protocol prevents inflation. The actual issue is that Monero's full privacy makes it impossible to publicly audit the total supply against the external Bitcoin reserves, thus eliminating the verifiable 1:1 collateral guarantee.
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I just destroyed my Rizful node.
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