0 sats \ 6 replies \ @BitcoinIsTheFuture OP 27 Mar \ parent \ on: UTXO consolidation - What's you best option(s)? bitcoin_beginners
Have you used liquid? What pro’s and con’s have you noticed? It seems like an interesting option to expand scaling.
Liquid is a sidechain operated by a federation of companies in the Bitcoin space. It uses L-BTC, a token pegged to bitcoin, as it's currency. You can use this to see how much bitcoin Liquid has and what the health of the peg is.
https://liquid.network/
You get some interesting benefits with using Liquid, mainly being improved privacy, faster settlement, and lower fees (as long as Liquid usage is lower than base chain). IMO the best use case for it today is a place to build enough sats for a swap to the base chain with a single large UTXO (1m sats minimum, ideally more). Your sats are generally safer on Liquid than an exchange, but less safe than base layer, so I think of it as a middle ground.
Given that this is a federation, there are trade offs to be aware of. There is the risk of a rug if the vast majority (I want to say 11/15 but dont quote me on that) want to act maliciously. I believe they can also censor txs. Understand the companies involved in the federation and whether or not you're comfortable with this trust model. Again, not ideal for life savings, but maybe for working capital 🤷♂️.
https://liquid.net/
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Cool thanks! Yeah listed to a WBD podcast on it and it sounded pretty interesting https://youtu.be/LGR_visD5S4?si=m4SzGDf-TZzS1F_Q
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That was a good one! Wanna know more about that network upgrade he mentioned...
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Same will be interesting to see how that plays out!
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I recommend Aqua wallet if you want to try out Liquid. Smooth experience overall and you can pay LN invoices with your Liquid sats (just be aware of fees, which will be higher than LN in most cases)
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Cool, yeah that was shared in the podcast I listed to above. Good to hear from real stackers like you on how it’s going though!
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