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10 sats \ 1 reply \ @joda 24 Jan \ on: Is Liquid Bitcoin real Bitcoin? bitcoin
L-BTC is a contractual claim to real Bitcoin, with that contract being created and guaranteed by a federated custodial institution. If you had a certificate for gold "guaranteed" to be redeemable for gold, you would not call it "gold".
Lightning is a contractual claim to real Bitcoin, with that contract being created and guaranteed by CODE, on the blockchain. But it is a huge pain in the ass, so most people prefer custodial wallets.
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20 sats \ 0 replies \ @ZezzebbulTheMysterious 25 Jan
Liquid behaves here the same as Lightning, the smart contract in both is created and guaranteed by code on the blockchain. In both cases its multisig UTXO. Pegout and close channel are similar operations, but LN allows a state update. There are no channels or timeouts in Liquid, its just L-BTC UTXOs. Individual LN transactions are not recorded for all eternity (just open/close/anchor). On liquid, they exist in an obscured form that does not reveal values, just the transaction graph.
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