Every single L-BTC issued by the liquid network is attached to a Bitcoin UTXO pegged into the Federation Multisig wallet. Anyone can verify the total amount of L-BTC issued using their node and perform pegins on their own with Blockstream's Elements software, this isn't possible with the shitcoin in question. The ability to verify issuance independently is important to mitigate hidden inflation.
The similarities between the two come from "Confidential Transaction" where zero knowledge proofs allow for senders and receivers to not reveal amounts.
Swapping in and out of Bitcoin with shitcoins in the name of privacy isn't new, it works in the short term provided the anonymity set is wide enough, but at best it's a tired party trick and shouldn't be taken seriously.
Nyoro~n
npub1zw…pqlfd
2024-07-28 14:40:33
in reply to nevent1q…3xn5
Author Public Key
npub1zwyrus8vrvv5pfj4lfmk44wnxajk56rk0959nqugzj9ewljk258sxpqlfdPublished at
2024-07-28 14:40:33Event JSON
{
"id": "14f579bbd431c5dfbbd09cad1b0b33aab7d5d08191ac997e58c2fa86b4e66e43",
"pubkey": "13883e40ec1b1940a655fa776ad5d337656a68767968598388148b977e56550f",
"created_at": 1722170433,
"kind": 1,
"tags": [
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"root"
],
[
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[
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],
[
"p",
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],
"content": "Every single L-BTC issued by the liquid network is attached to a Bitcoin UTXO pegged into the Federation Multisig wallet. Anyone can verify the total amount of L-BTC issued using their node and perform pegins on their own with Blockstream's Elements software, this isn't possible with the shitcoin in question. The ability to verify issuance independently is important to mitigate hidden inflation.\n\nThe similarities between the two come from \"Confidential Transaction\" where zero knowledge proofs allow for senders and receivers to not reveal amounts.\n\nSwapping in and out of Bitcoin with shitcoins in the name of privacy isn't new, it works in the short term provided the anonymity set is wide enough, but at best it's a tired party trick and shouldn't be taken seriously.",
"sig": "38fceed1821804ecac5ba06f7b4210a507121d1d82c87bb8a68a036cb8220840bb607e504da6bd63d232dd7fa26b58f5be450601ccc48078a0c38dcdc0a33eb7"
}