Liquid is a multisig pretending to be a sidechain. 15 people control your coins.
Drivechains are sidechains, chosen by 51% hashrate. They are a promise from the miners that they support these sidechains and will not destroy them in 10 minutes.
There is no reason to put sidechain technology on a fake sidechain and see how it does.
If you want to peg out of Liquid, and the Liquid federation wants to give you your Bitcoin, but 51% of miners do not want you to have your coins, they can censor you. They can censor lightning. They can kill every L2, including drivechains.
BIP300 recognizes this, so it does two things to protect itself:
1. Massive fees to miners. Why would miners kill something that always pays them? They are incentivized to protect the sidechains, make them better, and continue mining L1.
2. Six month peg out. This gives us six months to see if the miners are misbehaving, with a constant warning displayed to the world every 10 minutes.
If using a second layer to Bitcoin is its eventual future for the masses, then there is nothing close to drivechains.
BitVM has similar issues, though it’s MUCH better than lightning, and that is why Super Testnet and Robin still support BIP300.
BTCapsule 🏴🧡 /
npub1v6…kxk5t
2024-07-01 20:00:32
in reply to nevent1q…wl0v
Author Public Key
npub1v6xwae25wh6etmqw3m6yce9lnk5dnhtqpzk9fhxjfvjsryctjc8q2kxk5tPublished at
2024-07-01 20:00:32Event JSON
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"pubkey": "668ceee55475f595ec0e8ef44c64bf9da8d9dd6008ac54dcd24b2501930b960e",
"created_at": 1719864032,
"kind": 1,
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"content": "Liquid is a multisig pretending to be a sidechain. 15 people control your coins.\n\nDrivechains are sidechains, chosen by 51% hashrate. They are a promise from the miners that they support these sidechains and will not destroy them in 10 minutes.\n\nThere is no reason to put sidechain technology on a fake sidechain and see how it does.\n\nIf you want to peg out of Liquid, and the Liquid federation wants to give you your Bitcoin, but 51% of miners do not want you to have your coins, they can censor you. They can censor lightning. They can kill every L2, including drivechains.\n\nBIP300 recognizes this, so it does two things to protect itself:\n\n1. Massive fees to miners. Why would miners kill something that always pays them? They are incentivized to protect the sidechains, make them better, and continue mining L1.\n\n2. Six month peg out. This gives us six months to see if the miners are misbehaving, with a constant warning displayed to the world every 10 minutes. \n\nIf using a second layer to Bitcoin is its eventual future for the masses, then there is nothing close to drivechains. \n\nBitVM has similar issues, though it’s MUCH better than lightning, and that is why Super Testnet and Robin still support BIP300.",
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}