More BS on Lightning: Blockstream Pours Liquid on Thick

By January 23, 2020 DApps
Click here to view original web page at news.bitcoin.com
More BS on Lightning: Blockstream Pours Liquid on Thick

Blockstream reps have long been pushing for full implementation of the perpetually-delayed Lightning Network as the main solution for BTC scalability. With the recent announcement of “federated sidechain” Liquid’s integration with Btcpay, however, the tune seems to have changed. Past weeks have found Blockstream execs Adam Back and Samson Mow not only pushing Liquid hard, but going so far as to belittle Lightning, the once almost messianic layer-2 solution to Bitcoin Core’s scaling ills.

Also Read: Researcher’s Scathing Lightning Network Analysis Finds Flaws

Liquid and Lightning

With last week’s announcement that Blockstream’s federated sidechains are now integrated with Btcpay, Liquid has been back in the limelight. What is striking some folks as odd, however, is the overtly promotional tone being taken by Blockstream reps in regard to Liquid and its pegged assets such as L-BTC, even at the cost of criticizing the Lightning Network — long touted by the very same people to be BTC’s main scaling solution.

"don't use this" etc the reality is there are tradeoffs

1. Easier to lose via LN than LQ due to accidental close penalty
2. Offline during hostile close
3. LN Hot-wallet risk
4. Low value is less concern to many users.
5. LN retail freeze by LQ seems unlikely given small size.

— Adam Back (@adam3us) January 17, 2020

Blockstream CEO Adam Back made sure to note on Twitter he wasn’t discouraging use of the Lightning Network (LN), just that there were “tradeoffs.” Back elaborated that bitcoin is “Easier to lose via LN than LQ due to accidental close penalty” and that LN goes “Offline during hostile close.”

More BS on Lightning
More BS on Lightning

Blockstream CSO Samson Mow is of course also pushing Liquid adoption, and when asked about LQ being in competition with LN in a recent interview, he noted that hot wallet risk on LN meant that it can’t replace the utility of LQ. His carefully worded answer comes off almost as an advertisement for Liquid at the expense of Lightning, more than a general assessment of so-called competition. Further, if LN is supposed to be decentralized, it’s unclear how it could be “competing” in a business sense at all.

More BS on Lightning
More BS on Lightning

Sidechain Sales and Emergency Keys

Since Blockstream’s plan from early on has been to sell sidechains to big business, critics have long said that this incentivizes maintaining a status quo of small, congested blocks onchain. Of course this would run contrary to the idea of a decentralized, permissionless peer-to-peer cash system for anyone to use.

“The Liquid sidechain provides a different set of trade-offs that allow privacy and rapid finality of asset transfer at the expense of being a permissioned network relying on trust of the functionaries,” the FAQ publication reads. These functionaries are the members of the Liquid federation which “allows transactions on Liquid to reach a state of finality faster and more reliably than those on the Bitcoin blockchain.”

More BS on Lightning
More BS on Lightning
More BS on Lightning
More BS on Lightning

The 35-member federation takes turns proposing blocks “round-robin” style every minute and signing them. Should anything go wrong, the website affirms that “There are emergency keys that are able to access the bitcoin held by the network only if the network is down for an extended period of time.” In short, what concerns many in the crypto space is that for all the potential convenience of these settlement layers, the control of the assets ultimately lies offchain, with a trusted party. Liquid BTC and USDT as such are in the hands of Liquid and not the user.

So, whether an individual, exchange or other business decides to wait for the 102 confirmations needed to peg-in to L-BTC, and test out the Liquid federated sidechain, or simply sit back and see how the Btcpay integration develops, one thing remains fairly certain: the loud sales of centralized crypto projects on Twitter will be up and running 24/7. And unlike Liquid, even members of the “general public” can peg-out of that, simply by closing the laptop.

What are your thoughts on Liquid’s effort to scale BTC? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock, fair use.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.


Cypherpunk Bitstream Hosts Talk Crypto-Anarchy, Dropgangs, and Importance of Real Life Connections
Bitcoin.com Partners With Mecon Cash, Enabling Withdrawal at ATMs Across South Korea
An In-Depth Look at the Multi-Currency Cold Storage Card Ballet
Peter Schiff Forgets Bitcoin Wallet Password, Blames Bitcoin
Peter Schiff Forgets Bitcoin Wallet Password, Blames Bitcoin
Oklahoma Lawmaker Launches Bill to Create Crypto Depository for Government Use

New Guidelines Subject Canadian Crypto Exchanges to Securities Laws
FATF Holds Global Forum to Discuss Crypto Supervision
FATF Holds Global Forum to Discuss Crypto Supervision
Crypto vs RBI: 3 Days of Intense Supreme Court Hearings

Crypto vs RBI: 3 Days of Intense Supreme Court Hearings

Monopoly Is a Tiny Darknet Market With Big Aspirations
Monopoly Is a Tiny Darknet Market With Big Aspirations
Simple Ledger Protocol Shines During the Final Day of TNABC Miami

Direct Democracy Party to Solve Issues With Crypto Rights in Russia
4 Bitcoin Mixers for the Privacy Conscious
4 Bitcoin Mixers for the Privacy Conscious
Unnecessary Evil: How Government Regulations Kill Crypto Startups and Encourage Crime
Silvergate Bank and Bitstamp Launch Bitcoin Collateralized Loans
Silvergate Bank and Bitstamp Launch Bitcoin Collateralized Loans
First Bitcoin Cash Developers Meeting of 2020 to Be Held Today
First Bitcoin Cash Developers Meeting of 2020 to Be Held Today
Uzbekistan to Create National Mining Pool, Launch Licensed Exchange
Bitcoin Lawsuit Heats Up With More Bonded Courier Tales
Bitcoin Lawsuit Heats Up With More Bonded Courier Tales
Bitcoin Futures Hit 3-Month High in Frenetic Tuesday Trading
Bitcoin Futures Hit 3-Month High in Frenetic Tuesday Trading
SEC Issues Alert Against Initial Exchange Offerings
SEC Issues Alert Against Initial Exchange Offerings

Gavin Andresen Speaks About Ethereum's Tornado and Wallet Privacy
Indian Supreme Court Resumes Hearing Crypto Case in Detail
Indian Supreme Court Resumes Hearing Crypto Case in Detail
Kraken Acquires Australian Crypto Platform Bit Trade
Kraken Acquires Australian Crypto Platform Bit Trade
IIF Report Predicts Global Debt Will Reach New All-Time High of $257T in 2020
Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly
Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly
Market Outlook: Bullish Trend Sends Crypto Prices Northwards
Market Outlook: Bullish Trend Sends Crypto Prices Northwards
Win or Lose, These Crypto Whales Share Their Trades
Win or Lose, These Crypto Whales Share Their Trades
Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia
Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia
Coinme Adds BTC Purchase Function to Over 100 Coinstar Kiosks in California
Coinme Adds BTC Purchase Function to Over 100 Coinstar Kiosks in California

China Issues Digital Currency Guide for Party Cadres
NBA Star Spencer Dinwiddie Just Tokenized His Own Contract
NBA Star Spencer Dinwiddie Just Tokenized His Own Contract
Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments
Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments
Close to 11 Million BTC Haven't Moved in Over a Year
Close to 11 Million BTC Haven't Moved in Over a Year
Japan and Philippines Discuss Pro-Crypto Laws, Cooperation Among Asian Countries
With New Regulations, Europe’s Crypto Companies May Be Running Out of Options
Blockchain Tops the List of Most In-Demand Tech Skills for 2020
Blockchain Tops the List of Most In-Demand Tech Skills for 2020
China Saw $11.4 Billion in Crypto-Based Capital Flight Last Year
China Saw $11.4 Billion in Crypto-Based Capital Flight Last Year
White House Market Wants to Become the Darknet’s Toughest DNM

Vin Armani Talks Content, Reveals the 'Real' Bitcoin in New Video
Vin Armani Talks Content, Reveals the 'Real' Bitcoin in New Video
Institutional and Retail Bitcoin Futures Demand Continues to Climb
Institutional and Retail Bitcoin Futures Demand Continues to Climb
US and European Regulators Say Crypto a Priority This Year
Eastern Europe Sees More Fiat Options for Trading Crypto
Eastern Europe Sees More Fiat Options for Trading Crypto
Bitfinex ‘Copycat’ Lawsuit Withdrawn and Then Refiled in New District
Mining Report Highlights China's ASIC Manufacturing Improvements and Dominance
Independent Report Declares News.Bitcoin.com the Top Crypto News Site
Court Gives Craig Wright More Time to Await the Mysterious Bonded Courier
EU Countries Commence Crypto Regulations as Mandated by New Directive

Hacker Group Lazarus Uses Fake Exchanges, Telegram Groups
Hacker Group Lazarus Uses Fake Exchanges, Telegram Groups
Bithumb Pledges $8M to South Korea's 'Regulation-Free' Blockchain Zone
Mining Giant Canaan Faces Stiff Competition After IPO Shares Slump
Mining Giant Canaan Faces Stiff Competition After IPO Shares Slump
Video Games Giant Ubisoft Is Looking for Blockchain Startups to Support
6 High Interest-Paying Options for Crypto Lenders
6 High Interest-Paying Options for Crypto Lenders
Low Interest Rates Provide Precarious Protection Against Crisis, World Bank Warns
Philippine 'Crypto Valley of Asia' to Get Own Airport
Philippine 'Crypto Valley of Asia' to Get Own Airport
How Dropgangs and Dead Drops Are Transforming Darknet Practices
How Dropgangs and Dead Drops Are Transforming Darknet Practices
Ethereum, Tron and EOS Control 98% of All Dapp Volume
Ethereum, Tron and EOS Control 98% of All Dapp Volume

This Company Sets Out to Prove Crypto Mining Has a Place in Your Home
Researcher's Scathing Lightning Network Analysis Finds Flaws
Researcher's Scathing Lightning Network Analysis Finds Flaws
ECB Wants Active Role in Crypto, Will Not Deter Private Solutions
ECB Wants Active Role in Crypto, Will Not Deter Private Solutions
Kerala Outlines Plans to Become India's Blockchain Hub
Kerala Outlines Plans to Become India's Blockchain Hub
Why the Counter Economy Is Necessary to Bitcoin’s Survival as a Disruptive Currency
Bitcoin History Part 23: The First BTC Escrow
Bitcoin History Part 23: The First BTC Escrow
Federal Reserve Considers Creating a Separate Entity for Cash Injections
Federal Reserve Considers Creating a Separate Entity for Cash Injections
Japanese Firms SBI and GMO Join the Digital Gold Rush in Texas
Japanese Firms SBI and GMO Join the Digital Gold Rush in Texas
Binance Donates $1 Million in Crypto for Australian Bushfire Relief
Binance Donates $1 Million in Crypto for Australian Bushfire Relief

Korean Presidential Committee Pushes to Make Cryptocurrency Mainstream
Bank Closures and Withdrawal Restrictions Anger Lebanese Citizens
Kraken Reveals 49% Increase in Law Enforcement Investigations
Kraken Reveals 49% Increase in Law Enforcement Investigations
Honk Launches Token Sale to Fund SLP-Powered Sports Betting Site
Honk Launches Token Sale to Fund SLP-Powered Sports Betting Site
Bitmain Responds to Layoff Rumors From Ousted Co-Founder Zahn
Bitmain Responds to Layoff Rumors From Ousted Co-Founder Zahn
Market Update: Top Cryptos Face Strong Resistance Ahead
Market Update: Top Cryptos Face Strong Resistance Ahead
Regs Roundup: SEC Actions, Crypto Tax-Free in Korea, New Chinese Laws
Regs Roundup: SEC Actions, Crypto Tax-Free in Korea, New Chinese Laws
Problems Escalate in Venezuela as Millions Rush to Spend Petros
Problems Escalate in Venezuela as Millions Rush to Spend Petros
How to Sell Anything for Bitcoin on Your Website
How to Sell Anything for Bitcoin on Your Website

The Top 50 Crypto Memes of All Time
The Top 50 Crypto Memes of All Time
Meet the Multi-Cryptocurrency PoS Device Eletropay
Turkey Prepares to Increase Oversight in the Crypto Space
Turkey Prepares to Increase Oversight in the Crypto Space
Chipmaking Giant Samsung Reveals 3nm Semiconductor Prototype
Chipmaking Giant Samsung Reveals 3nm Semiconductor Prototype
McAfee Catches Heat After Welshing On Famous Bitcoin Bet
McAfee Catches Heat After Welshing On Famous Bitcoin Bet
33,000 Companies Register Blockchain Business in China
33,000 Companies Register Blockchain Business in China
Stablecoins Are Crypto's Version of Fractional Reserve Banking
Stablecoins Are Crypto's Version of Fractional Reserve Banking
SLP Devs Publish Code Bounties With $2,500+ in Crypto Rewards
SLP Devs Publish Code Bounties With $2,500+ in Crypto Rewards
John McAfee Plans to Tokenize All 535 Members of US Congress
John McAfee Plans to Tokenize All 535 Members of US Congress

Travala Scores 33% Revenue Growth With 60% of Bookings Paid With Crypto
Subhash Chandra Garg on the Future of Crypto
Subhash Chandra Garg on the Future of Crypto
Telegram Rejects SEC Request to Hand Over Bank Records for TON
Telegram Rejects SEC Request to Hand Over Bank Records for TON
New SLP Telegram Bots Introduced to Bitcoin Cash Supporters
New SLP Telegram Bots Introduced to Bitcoin Cash Supporters
Ross Ulbricht Supporters Auction Collectibles After BTC Price Wager Goes Sour
Crypto Fundraising Is Changing Again in 2020
Crypto Fundraising Is Changing Again in 2020
IMF Helping Philippines Become Important Crypto Market
IMF Helping Philippines Become Important Crypto Market
Grassroots Bitcoin Cash House Movement Expands to Ghana
Grassroots Bitcoin Cash House Movement Expands to Ghana
Scottish Novelist Andrew O'Hagan Asked to Testify in Kleiman v. Wright Lawsuit

HSBC Closes 2 Branches Following New Protests in Hong Kong
HSBC Closes 2 Branches Following New Protests in Hong Kong
Proof of Keys Day Returns on Bitcoin’s 11th Birthday
Proof of Keys Day Returns on Bitcoin’s 11th Birthday
A Deep Dive Into Satoshi's 11-Year Old Bitcoin Genesis Block

A Deep Dive Into Satoshi's 11-Year Old Bitcoin Genesis Block

Ticker Tool Uses the BCH Blockchain to Provide Reliable Rate Data
Ticker Tool Uses the BCH Blockchain to Provide Reliable Rate Data
Why Double Spends on BCH Are Not the Same as Replace-By-Fee Fraud
Why Double Spends on BCH Are Not the Same as Replace-By-Fee Fraud

Google Restores Metamask App After Community Uproar
Google Restores Metamask App After Community Uproar
Why Nick Szabo Probably Isn’t Satoshi
Why Nick Szabo Probably Isn’t Satoshi
Tron-Based Tether Has Ballooned to Over 900 Million Tokens, Almost 22% of Total Supply
Government Confirms Crypto Profits Not Taxable in South Korea
Government Confirms Crypto Profits Not Taxable in South Korea
These Are the Bitcoin Stories You Loved in 2019
These Are the Bitcoin Stories You Loved in 2019
Using a VPN May Get Israeli Crypto Traders in Trouble
Using a VPN May Get Israeli Crypto Traders in Trouble
Wifi Sharing Platform Wicrypt Gets Government Grant in Nigeria
Wifi Sharing Platform Wicrypt Gets Government Grant in Nigeria
Alleged $8B BTC Tulip Trust Expires With Tales of Bonded Couriers
Alleged $8B BTC Tulip Trust Expires With Tales of Bonded Couriers
China Takes Another Step Away From USD Hegemony
China Takes Another Step Away From USD Hegemony

Etoro CEO Yoni Assia on Reaching 12 Million Users and Why Cryptos Are a Gateway to Stocks 
Veriblock Captured Close to 60% of BTC's OP Return Transactions in 2019
Live Streaming Platform Dlive Joins Bittorrent Ecosystem
Live Streaming Platform Dlive Joins Bittorrent Ecosystem
A Tor-Integrated Cashfusion Build for Bitcoin Cash Is Coming
A Tor-Integrated Cashfusion Build for Bitcoin Cash Is Coming
Regs Roundup: China Blockchain ETF, New French Crypto Rules, Tokens Money in Russia
Bitcoin’s Next Decade Will Be Shaped by Derivatives
Bitcoin’s Next Decade Will Be Shaped by Derivatives
Number of Israeli Blockchain Companies Grew by 32% in 2019
Number of Israeli Blockchain Companies Grew by 32% in 2019
Debate Ensues After 68% of BCH Hashrate Mined by Stealth Miners
Debate Ensues After 68% of BCH Hashrate Mined by Stealth Miners
South Korea Imposes $69M Tax Obligation on Crypto Exchange Bithumb

Ethereum Proponent Virgil Griffith Deemed a Flight Risk, Judge Denies Bail
Wazirx CEO on 2020 Outlook, RBI Ban, Crypto Regulation for India
Coinbase Wallet Removing Mobile Dapp Browser to Comply With Apple
Coinbase Wallet Removing Mobile Dapp Browser to Comply With Apple
Central Bank Gold Hoarding Hits 50-Year High
Central Bank Gold Hoarding Hits 50-Year High
French Businessman Detained for Stealing €1.2 Million in Crypto From His Partners
You Can Now Buy Cryptocurrency With Credit Card on Bitcoin.com Exchange
Google Bans Crypto App Metamask From Play Store
Google Bans Crypto App Metamask From Play Store
Market Update: Crypto Traders Search for Bullish and Bearish Trends
Indian Government's Institute Offers Blockchain Training in Multiple Cities
Indian Government's Institute Offers Blockchain Training in Multiple Cities

France's Social Media Stalking Points to the Violence of Fiat, Consent of Crypto
Cloud Token and the Rise of MLM Crypto Projects
Cloud Token and the Rise of MLM Crypto Projects
Authorities in Sichuan Go After Miners to Save Electricity in the Dry Season
Harsh Laws Make Bitcoin Holders Consider Renunciation or Dual Citizenship
Asia’s Love Affair With Blockchain Is Blossoming
Asia’s Love Affair With Blockchain Is Blossoming
Mainstream Media's Hit Piece on Hitmen Fails Miserably
Mainstream Media's Hit Piece on Hitmen Fails Miserably
User Reports Reveal Visa and Mastercard Outages During the Holidays
As FATF Regulations Galvanize, Crypto Mixing Applications Are Targeted
4 Beijing Regulators Issue New Crypto Activity Warning
4 Beijing Regulators Issue New Crypto Activity Warning

Crypto’s Counterpunch to U.S. Hegemony and Empire
Germans Rush to Buy Gold as Draft Bill Threatens to Restrict Purchases
Germans Rush to Buy Gold as Draft Bill Threatens to Restrict Purchases
Shenzhen Stock Exchange Launches Index of Top 50 Blockchain Public Companies
Bitcoin Gained 8.9 Million Percent Over the Last Decade
Bitcoin Gained 8.9 Million Percent Over the Last Decade
Bitmain and Canaan to Reveal 5nm Bitcoin Mining Chips in 2020
Bitmain and Canaan to Reveal 5nm Bitcoin Mining Chips in 2020
Japan Hosting World Conference to Discuss Decentralized Financial Governance
Youtube 'Christmas Purge' Has Content Creators Pointing to These Alternate Platforms
Russia’s Supreme Court Recognizes Tokens as Assets Like Money and Property
Close to 14,000 Google Scholar Articles Mentioned Bitcoin in 2019
Close to 14,000 Google Scholar Articles Mentioned Bitcoin in 2019

7 Steel Crypto Wallets That Withstand Extreme Fire and Water Damage
Someone Redeemed a 100 BTC Casascius Bar Worth Over $700K
Someone Redeemed a 100 BTC Casascius Bar Worth Over $700K
A Bitcoin War Is Brewing Over KYC
Banking Platform Cashaa Sees Indian Trading Volume Soar, Adding 5 More Cryptocurrencies
Greek Court Suspends Decision to Extradite Alexander Vinnik
Greek Court Suspends Decision to Extradite Alexander Vinnik
Chinese Police Seize Thousands of Miners, Arrest Dozens of Scammers
Chinese Police Seize Thousands of Miners, Arrest Dozens of Scammers
2019 Google and Yahoo Searches for Bitcoin Decline Significantly
2019 Google and Yahoo Searches for Bitcoin Decline Significantly
Utorg Exchange Grants Access to Traders With Limited Verification
Utorg Exchange Grants Access to Traders With Limited Verification
Getting In and Out of the Cryptocurrency Economy Can Be Costly

Wirex CEO Pavel Matveev Shares Expansion Plans for 2020
Wirex CEO Pavel Matveev Shares Expansion Plans for 2020
Cashshuffle and the SLP Token Universe Shined Brightly in 2019
Speculation Abounds Regarding Youtube's Removal of Crypto Content
Crypto Confronts Social Justice Warriors 
Crypto Confronts Social Justice Warriors
Uzbekistan Bans Citizens From Buying Crypto, They Can Only Sell
Uzbekistan Bans Citizens From Buying Crypto, They Can Only Sell
Coinbase Closes Earn.com One Year After $100M Acquisition
Coinbase Closes Earn.com One Year After $100M Acquisition
Thomson Reuters Launches Crypto Tax Tool
Thomson Reuters Launches Crypto Tax Tool
Mnuchin Affirms $1.5 Trillion Unaccounted For, Still Demands Strict Bitcoin Regulation
Mnuchin Affirms $1.5 Trillion Unaccounted For, Still Demands Strict Bitcoin Regulation
Regulatory Roundup: New US Crypto Bill, France's 1st Approved ICO, Muslim Crypto
Regulatory Roundup: New US Crypto Bill, France's 1st Approved ICO, Muslim Crypto

Leave a Reply