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With the L1 for big transactions and LN for micro payments where does Liquid fit? My early reading indicates more centralization risk, am I right?
it sucks and nobody uses it
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Thought so!
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Personally, I'm glad it exists. It is so small that it's really irrelevant as a risk. I've never used it and don't plan to but I'm glad we have people experimenting. We can learn through their failures and they might generate some good ideas that end up working on lightning.
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It is predominantly used by exchanges for large scale transactions. It has a better privacy, faster block confirmations, and also supports custom assets.
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I only know of L-BTC due to lending via hodlhodl, but beyond that.
I don't really know much else about it.
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I've used it. I believe it will be used more in the future too.
Just like with lightning, I wouldn't put too much of my stack on there
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side chain for private bitcoin txs
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It's bitcoin's appendix. Serves no purpose and you might as well remove it before it causes trouble
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