OneBigLife on Nostr: Liquid is a definite yes, because it solves problems that most Fedimints don't, yet. ...
Liquid is a definite yes, because it solves problems that most Fedimints don't, yet.
Fedimints and eCash mints are very important for bitcoin's scalability and privacy, etc. But a lot of trust is involved for eCash, with a single entity being able to rug pull you. Fedimints spread the trust across multiple entities that need to collude to rug pull you.
But the issue is that currently Fedimints are difficult to persuade people to trust and use. For instance, if a local bitcoin meetup group sets up a Fedimint, how does a newcomer to the group know that the signers of the mint are not all friends that are colluding with each other?
Liquid solves this problem by federating the signing trust across well-trusted companies (see attached image). The likelihood of 11 of these companies colluding is extremely small. They all have reputations built with much work, that they do not want to lose. And a company is less likely than an individual to commit fraud on this scale, as they have to avoid internal whistle-blowing, and are more easily held to account by the justice system.
Liquid yes, or no?
Published at
2024-07-29 10:04:54Event JSON
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"content": "Liquid is a definite yes, because it solves problems that most Fedimints don't, yet.\n\nFedimints and eCash mints are very important for bitcoin's scalability and privacy, etc. But a lot of trust is involved for eCash, with a single entity being able to rug pull you. Fedimints spread the trust across multiple entities that need to collude to rug pull you.\n\nBut the issue is that currently Fedimints are difficult to persuade people to trust and use. For instance, if a local bitcoin meetup group sets up a Fedimint, how does a newcomer to the group know that the signers of the mint are not all friends that are colluding with each other?\n\nLiquid solves this problem by federating the signing trust across well-trusted companies (see attached image). The likelihood of 11 of these companies colluding is extremely small. They all have reputations built with much work, that they do not want to lose. And a company is less likely than an individual to commit fraud on this scale, as they have to avoid internal whistle-blowing, and are more easily held to account by the justice system.\n\nhttps://m.primal.net/Jhoy.png \n\nnostr:note1zjrg8r0uxp3kaat9u3d97g8euq6qlsmr05msx8yp88zx400885nqw7ggz5 ",
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