165 sats \ 1 reply \ @timechain 2 Jan 2023 \ on: Do you or does anyone you know use the Liquid Network? bitcoin
It's not used very often except for trading, but here's why it's valuable for that:
  1. shorter block times: can get from 1 exchange to another quicker for arbitrage opportunities. (also less fees)
  2. "confidential" transactions: not entirely confidential (sender and recieving addresses still visable) but unlike bitcoin, amount (and asset type) is confidential. This way, if you are moving a bunch of L-BTC (LiquidBTC) or LUSDT(LiquidUSDTether) to an exchange from cold storage or another exchange, people are less likely to front-run you.
  3. maybe if you can get your funds on and off exchanges quicker and cheaper, maybe you will keep it on exchanges less. An exchange that is part of the liquid group that you use can go down, but as long as your funds arent on it when it does, your good.
  4. its a way of issuing assets on bitcoin (tether, NFTs, even registered securites where certain addresses are whitelisted as qualified investers, paving the way for tokenized stocks, a legit use of tokens, where they will come with legal enforcement.
I wish it was used more than it is. Samson Mow's company Jan3, which work's on nation-state adoption is going to be re-releasing Blockstream's "Aqua Wallet," promising to have easy BTC, LN, Liquid BTC and other Liquid assets like Liquid USDT. This may be a gamechanger.
Alot of maxis are against it. But they had the opportunity to create a token while making this. They didnt. They used Bitcoin for this network. This is just another tool of Bitcoin, and has some attributes that may be able to be of use for privacy purposes in the future if more people use it.
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0 sats \ 0 replies \ @cigarette OP 2 Jan 2023
Thanks for the background!
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