Sovereign Matt's avatar
Sovereign Matt sovrynmatt@nostrplebs.com 2 years ago
Liquid is not a real sidechain because it’s federated. Even Adam Back and Sergio Lerner (inventor of the Rootstock/RSK sidechain) will admit this. Real sidechains work peer-2-peer. No gatekeeper. No middle men. Are merged mined with the parent chain. Fees go to those who provide the proof of work for executing the sidechain transactions not unknown federation members who can collude to steal your funds.
↑ Parent

Replies (2)

techfeudalist 's avatar
techfeudalist 2 years ago
It seems clear to me that both drivechains and liquid use a federation. The mechanics are different but in both cases there is a group that has the power to validate transactions and who can collude and steal funds. There is no free lunch. When you set up your sidechain you can ask the big mining companies to be in your private federation. If you trust them as drivechain validators, you should trust them as your sidechain validators. No need to hack bitcoin and change the incentives of the core protocol.
1 replies ↓
↑