882 sats \ 5 replies \ @deerwhisper 17 Dec 2023 \ on: Liquid is not a scaling solution bitcoin
Liquid allows me to stack enough sats to eventually swap to the base chain and have large UTXOs in a way that lightning can't. For now, it works in a way that I need and I'm happy with that. It's just a tool in the toolbox. If usage of it were to grow, it could at least absorb some fee pressure from the base chain. You are right tho, it's not a long term scaling solution.
Really curious to see how Fedimint works in practice. Saw it was used this year at a conference and it looked pretty cool. Time will tell there.
As for covenants, still need to research it myself. Is there a covenant proposal that doesn't require a hard/soft fork? What about BitVM? Not technical enough to understand that stuff...
You can't stack on lightning and then swap to the base chain and have a large utxo?
reply
Not without inbound liquidity. With Liquid you can just receive some btc to your liquid wallet and you're good to go. With lightning you need channels with inbound liquidity.
reply
Sure, forgot about that. However, on custodial wallets that's a non issue, and now on Phoenix 1Msats inbound liquidity sets you back $1 for a year.
reply
Definitely an option. Haven't used Phoenix's liquidity ad thing yet.
It's just a tool in the toolbox
reply
$10, forgot a zero heh
reply