Re: [bitcoin-dev] Liquid

From: Tier Nolan <tier.nolan@gmail•com>
Cc: Bitcoin Dev <bitcoin-dev@lists•linuxfoundation.org>
Subject: Re: [bitcoin-dev] Liquid
Date: Tue, 13 Oct 2015 15:57:00 +0100	[thread overview]
Message-ID: <CAE-z3OUxFaA5RxdhNwJp3efBeah8J+QzvTXqD3irVoMNkX0X5A@mail.gmail.com> (raw)
In-Reply-To: <CAOoPuRZ3Riu+KWXCS7no6ySzOh4ndQ203C0FCdmp1sebLC3B_g@mail.gmail.com>

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It is interesting someone trying the sidechain approach.

I guess having trusted third parties to manage the chain was not a short
term thing?  It looks like there is no POW for the Liquid sidechain.

This is an area where the bitcoin could benefit by adding a way to transfer
money to/from sidechain without requiring third parties.

On Tue, Oct 13, 2015 at 3:27 PM, Benjamin via bitcoin-dev <
bitcoin-dev@lists•linuxfoundation.org> wrote:

> p.s. the links
>
> [1] https://blockstream.com/2015/10/12/introducing-liquid/
> [2] www.coindesk.com/blockstream-commercial-sidechain-bitcoin-exchanges/
>
> On Tue, Oct 13, 2015 at 4:25 PM, Benjamin <benjamin.l.cordes@gmail•com>
> wrote:
>
>> Hello all,
>>
>> I was very surprised to learn that Blockstream will implement Sidechains
>> for exchanges [1], [2] and has been working on this privately. Can somebody
>> explain this “announcement”? Just a few comments on this “proposal”.
>>
>> “This new construction establishes a security profile inherently superior
>> to existing methods of rapid transfer and settlement, and is directly
>> applicable to other problems within existing financial institutions.”
>>
>> First of all, what does Bitcoin have to do with existing financial
>> institutions? Secondly, what in do you mean by “rapid transfer” and
>> "settlement"? Bitcoin is anonymous, digital cash. There is no such thing as
>> settlement, there is only the transfer of digital cash and that's it
>> (settlement is a bad word for this kind of transfer of property). If you
>> make up new terms define them accurately and don't play the
>> crypto-buzzword-bingo game.
>>
>> “This, in addition to increasing the security of funds normally subject
>> to explicit counterparty risk, fosters conditions that increase market
>> liquidity and reduce capital requirements for on-blockchain business
>> models.”
>>
>> Again – what does Bitcoin have to do with “market liquidity” and “capital
>> requirements”?
>>
>> “Blockstream's innovative solutions are definitely a game changer for the
>> Bitcoin industry.”
>>
>> Does Blockstream have commercial products now?
>>
>> "These initial launch partners include Bitfinex, BTCC, Kraken, Unocoin,
>> and Xapo, and discussions are underway with another dozen major
>> institutional traders and licensed exchanges. "
>>
>> ??? so many questions and no answers.
>>
>> Regards,
>> Benjamin
>>
>
>
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