Cyph3rp9nk on Nostr: Even in Liquid there is a risk of hidden inflation, although less likely than in ...

Even in Liquid there is a risk of hidden inflation, although less likely than in Monero because it is simpler, but still possible.

In that case, someone could create L-BTC and withdraw them through pegout, breaking the 1-1 ratio.

Would you use Liquid for your life savings?

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nevent1q…qf5f

I would add the privacy-verifiability duality to the blockchain trilemma.

The trilemma is:

-Security
-Scalability
-Decentralization

You cannot prioritize any of these characteristics without harming the other two.

Similarly, the privacy-verifiability duality means that we currently do not know how to make a blockchain private without compromising verifiability. The more private a chain is, the less verifiable it is, and the more verifiable a blockchain is, the less private it is:

- Privacy
- Verifiability

You cannot escape this; it is mathematics. That is why many opinions about Bitcoin and other blockchains are dishonest, trying to sell you lies.

In Bitcoin, security and decentralization have been prioritized at the expense of scalability, which is why a layered system such as TPC/IP was chosen, so that scalability occurs in layers L2 and L3, or whatever layers there may be.

All blockchains that do not have L2 will compromise their security or decentralization in favor of scalability, as is the case with Monero.

On the other hand, in terms of the privacy-verifiability duality, Bitcoin has prioritized verifiability, as it is totally unacceptable that there could be an undetectable bug and that its supply is not deterministic and fixed. If this were the case, Bitcoin would have no reason to exist.

Other chains sell privacy and verifiable supply, and this is completely false; again, it's mathematics.

What I am exposing is the lack of honesty. It's fine to have private blockchains; it's just another tool, but what is wrong is lying.





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