Has anyone used Liquid to anonymize or for private transactions?
913 sats \ 12 comments \ @fbv000 7 Nov 2023 bitcoin
I'm curious if anyone has experience with "pegging-in" Bitcoin to the Liquid network and utilizing L-BTC for private transactions.
What was your experience with:
  • The conversion process from Bitcoin to L-BTC?
  • Withdrawals from exchanges directly as L-BTC?
  • Reverting from L-BTC back to Bitcoin ("pegging-out")?
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499 sats \ 0 replies \ @DarthCoin 7 Nov 2023
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41 sats \ 1 reply \ @benthecarman 7 Nov 2023
No one uses liquid so you would not really gain any privacy because there's no crowd to hide in
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0 sats \ 0 replies \ @kristapsk 7 Nov 2023
I use it from time to time for some stuff, mainly to briefly get USDT there to buy more Bitcoin.
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1141 sats \ 0 replies \ @deletedd 7 Nov 2023
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1070 sats \ 0 replies \ @OT 7 Nov 2023
The amount is hidden in liquid. It's revealed when you peg out to BTC.
I see liquid as one of the side chains to use when BTC has expensive transactions. LN being the other option.
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0 sats \ 5 replies \ @DarthCoin 7 Nov 2023
I use SN for that. Very easy.
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0 sats \ 4 replies \ @fbv000 OP 7 Nov 2023
Can you pls elaborate the best way to do it? Does it work if you do not have your own Lightning node? I do have a BTC core node though
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200 sats \ 3 replies \ @DarthCoin 7 Nov 2023
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0 sats \ 0 replies \ @Krv 7 Dec 2023
Really great content! Sent me down a rabbit hole I'll be in for awhile.
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0 sats \ 1 reply \ @fbv000 OP 7 Nov 2023
thanks !
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0 sats \ 0 replies \ @DarthCoin 7 Nov 2023
You've just received some sats for your post. Did you ever think about from who and from which UTXOs are coming those sats? Good luck finding that !
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0 sats \ 0 replies \ @Krv 7 Dec 2023 freebie
In regards to privacy, in Liquid, the amounts are confidential, but the trail of transactions are not. So, as mentioned in other comments, the anonymity set is very low and it can be guessed with good odds where the funds ended up.
It would be great if multiple rounds of Coinjoins or Payjoins could be done. They would be virtually impossible to correlate because the amounts cannot be seen. However, as of now, there's not much usage and I don't think there are any implementations of these on Liquid.
Nevertheless, I have used Liquid for their Tether stable coin asset when I needed to maintain some dollar denominated funds for a time. Also, it's great to have some L-BTC for keeping some funds for the event that BTC fees go up.
I've used Sideshift.ai mostly in the past. However, also, https://boltz.exchange/ and https://sideswap.io/ are good options which I use going forward.
Check another thread (#63401) where the topic of privacy is discussed.