1) censorship: selective action like the ability to censor a certain UTXO on Liquid is mathematically impossible because you can't even identify outputs due to confidential transactions (which blind asset and asset type). They would need to know the UTXOs beforehand and even then you wouldn’t lose coins, it would just fail and you’d try again with a diff UTXO.
2) state: Liquid is resilient because the federation members (who custody the BTC multisig) are in multiple jurisdictions across the world and run physical HSMs, you literally have to go in-person to commandeer them and turn off. There’s also the Dynamic Federations upgrade last year which allows the Federation to add/remove entities to be able to peg-out (without them having to run functionaries/have HSMs), so in the event of a real globally coordinated state attack, there would be more options to peg out.
Hope this helps.
prochronist
npub147…6lr8c
2023-05-29 13:57:45
in reply to nevent1q…aygx
Author Public Key
npub1478w8wcqdhq9utad68256d7xc2gjcek03t99sr6qnmh5drzr4e8sl6lr8cPublished at
2023-05-29 13:57:45Event JSON
{
"id": "0bca5ddc59eeb7f6498703efa16f1cbc1cadc6cb7b1d7b73fad3e5d49f6c7b8a",
"pubkey": "af8ee3bb006dc05e2fadd1d54d37c6c2912c66cf8aca580f409eef468c43ae4f",
"created_at": 1685368665,
"kind": 1,
"tags": [
[
"e",
"56bb6307eb8b86272ee36af046d7074fd25b0db2bd7a51ad68428057d0d252f4"
],
[
"p",
"922945779f93fd0b3759f1157e3d9fa20f3fd24c4b8f2bcf520cacf649af776d"
],
[
"p",
"51bbb15e37e85b00d8a76837b6b6a3355d1dc5ec58bdd0f3808c9ad3b77a2290"
]
],
"content": "1) censorship: selective action like the ability to censor a certain UTXO on Liquid is mathematically impossible because you can't even identify outputs due to confidential transactions (which blind asset and asset type). They would need to know the UTXOs beforehand and even then you wouldn’t lose coins, it would just fail and you’d try again with a diff UTXO.\n\n2) state: Liquid is resilient because the federation members (who custody the BTC multisig) are in multiple jurisdictions across the world and run physical HSMs, you literally have to go in-person to commandeer them and turn off. There’s also the Dynamic Federations upgrade last year which allows the Federation to add/remove entities to be able to peg-out (without them having to run functionaries/have HSMs), so in the event of a real globally coordinated state attack, there would be more options to peg out. \n\nHope this helps.",
"sig": "c30ddd43e5ec16590375d1856d89ad422b2249a3624100f9c094951d39b5f22d3d30b95d647408b20327d8255b61faf960a8359fd27339d653f93884c46d7bac"
}