Agreed, I think the Liquid model is starting to demonstrate its advantages. I am concerned about how the Beast in DC will react to the federated model if it gains traction. The mere whiff of anything “custodial” triggers instant bloodlust. The great team at Blockstream should start considering this possibility and how to address it.

🤣🤣🤣 View quoted note →

🛸🛸🛸

Liquid is far easier and cheaper to self custody.

Can we expect this kind of implementation in @Blockstream Green wallet too? Since they already have Lightning in beta phase, this would make sense?

I have covered it a lot throughout the past but probably worth bringing to the forefront again. The way I think about Liquid is as a pseudo custodian distributed across jurisdictions with privacy built into all transactions. A federation is still just an IOU in a certain sense, but with a far higher difficulty of a hack, much better provenance when it comes to full reserve and transparency, completely open codebase, and with privacy within liquid (regarding amounts) from even the operators of the network. It’s essentially a highly optimized and more secure custodian model that mitigates the “single trusted third party” problem. A model that’s specifically unique to bitcoin.

Federations are going to be a big part of the ecosystem. Still believe that.

Eh, sort of. It’s only pseudo self custody in a way. But it is easier to operate, but certainly isn’t the same in regard to user control. Don’t want to sell it as something it isn’t.

Not pseudo self custody. Just IOU. View quoted note →

It’s in the sense that you hold your own keys that are not identity based, but as I said in like 3 other comments, I agree, it is an IOU.

self souvereign will play a big part in the apocalypse

Also agree 🤷🏻‍♂️ none of this is mutually exclusive.

(X) Bitcoin pseudo self custody (O) Bitcoin IOU self custody

Please where can I learn more about this? Thanks

Have a god day dude. If you actually care to learn about the trade offs and how I think about it I’ve covered it a bunch on Bitcoin Audible.

That tradeoffs will repeat the history. I don't want to see that.

I was brainstorming something like this weeks ago. My main use case is using Liquid as a stop gap until I have enough sats to have a bigger UTXO to go mainchain with. Using Boltz to swap from lightning to liquid when my channels are too full and need balancing. I would love a mobile wallet that had all this built in. note17h4qqmyhueq5gqldpe5qd3ss0s72svu6vy4whhma7qxjxc205sksttkxdj

Pretty good strategy for mitigating both the degree of trust and the fees for getting on BTC, imo. Im going to start playing around with liquid more

sounds very complicated and every time you switch to another network, you pay fees i use monero, low fees, privacy and very easy

It ain’t a scaling solution. The only reason it has low fees is because so few people use it. It runs into all the same problems plus more if it was dealing with the size of the ecosystem that bitcoin is dealing with.

it’s an interesting avenue to explore

Agreed I also diversify into LBTC because I’m not a techy guy and LBTC on blockstream green + jade is very easy for user like mine but also have some deep fear that when they came into the spotlight, regulators will hunt them down and causing trouble (but this fear might stem from the fact that I’m not fully understands how liquid network works, so now I think its the same as let blockstream custody my coins 😅)