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 > 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 >> > > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > >