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Does Liquid BTC enhance on chain privacy?
93 sats \ 2 comments \ @ElDude 10 Dec 2023 bitcoin
So I’ve been reading up on Liquid BTC because of the lower transaction fees and was wondering if this would be another way to enhance privacy.
From what I’ve gather so far, L-BTC is obtained via a peg in where your bitcoin is sent to a multiseg wallet. You can convert your L-BTC to bitcoin via a peg out where you’re given back bitcoin.
If bitcoin is bought using an exchange can it be pegged in to the Liquid network then pegged out to “exchange” your KYC sats for non KYC?
Is this how it would work or am I missing something? Thanks for the help!
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10 sats \ 0 replies \ @DarthCoin 10 Dec 2023
I already said what I have to say about Liquid here: #318849
Many people now do not realize that they are manipulated in using x or y by many influencers...
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10 sats \ 0 replies \ @Krv 10 Dec 2023
Liquid obscures the amounts, but not the addresses. Thus, it is possible to deduce a probabilty of address correlations in transactions.
A cool site for peg-in and peg-out is Sideswap. Perhaps one way to anonymous coins is to use tor and pegin with your btc to lbtc, then pegout with them later on a new tor connection. Perhaps combine with Boltz exchange, as they support bitcoin, lightning, and liquid. Could use tor with them as well.
Though, I think the very best would be a coinjoin on Liquid. No amounts visible and thus impossible to correlate addresses with certainty. I don't know if anyone has implemented that though.
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