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Update docs/liquid/liquid-part1.md

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@ -9,9 +9,9 @@ This is a multipart DeepDive that will focus on the [Liquid Sidechain](https://l
Liquid is a federated BTC sidechain. The federation which controls the network are known as 'Functionaries'. Currently, there are 15 such Functionaries[^1] who are geographically dispered to help isolate the network from both physical and regulatory disruption. Liquid is a federated BTC sidechain. The federation which controls the network are known as 'Functionaries'. Currently, there are 15 such Functionaries[^1] who are geographically dispered to help isolate the network from both physical and regulatory disruption.
These Functionaries are who does the Block signing, which happens in a round-robin style arrangement - consensus requires 11-of-15 to be available. unctionaries are who do the block signing for the network, which happens in a round-robin style arrangement - consensus requires 11-of-15 to be available and in agreement.
A unique aspect of this federation is that functioinary membership is dynamic - using a protocol known as *DynaFed* - this allows members to be rotated out/in depending on circumstance. The signing method the functionaries use is known as [ROAST](https://eprint.iacr.org/2022/550.pdf) (Robust Asynchronous Schnorr Threshold Signatures). As stated: A unique aspect of this federation is that functioinary membership is dynamic - using a protocol known as *DynaFed* - this allows members to be rotated out/in depending on circumstance. In order to support a large number of signers, the functionaries use a signature style known as [ROAST](https://eprint.iacr.org/2022/550.pdf) (Robust Asynchronous Schnorr Threshold Signatures). As stated:
"It guarantees that a quorum of honest signers, e.g., the Liquid functionaries, "It guarantees that a quorum of honest signers, e.g., the Liquid functionaries,
can always obtain a valid signature even in the presence of disruptive signers can always obtain a valid signature even in the presence of disruptive signers
@ -22,11 +22,11 @@ A unique aspect of this federation is that functioinary membership is dynamic -
responding at all), the 67 honest signers can successfully produce a signature within responding at all), the 67 honest signers can successfully produce a signature within
a few seconds." a few seconds."
The main benefit of ROAST is that signing becomes less problematic with a large number of federation members. Obviously this along with the inclusion of *DynaFed* (a recent addition to the network), seems to indicate that they plan to increase the total federation functionaries in the future[]. Obviously this along with the inclusion of *DynaFed* (a recent addition to the network), seems to indicate that they plan to increase the total federation functionaries from 15 to more in the future.
**Functionaries Sign, not Mine** **Functionaries Sign, not Mine**
A key aspect of Liquid is *there is no mining*. The core asset, L-BTC, is only created when BTC pegs-into the network, so unlike Bitcoin, mining is not used to create issuance of new coins. The total amount L-BTC can be verified along with the equivalent amount of BTC, which are held in a public multisig address. This ensures that there is no inflation possible of L-BTC, since it is issued 1:1 with the pegged BTC. A key aspect of Liquid is *there is no mining*. The core asset, L-BTC, is only created when BTC pegs-into the network, so unlike Bitcoin, mining is not used to create issuance of new coins. The total amount L-BTC can be verified along with the equivalent amount of BTC, which are held in a public multisig address. This ensures that there is no inflation possible of L-BTC, since it will balance 1:1 with the pegged BTC.
By default, all Liquid transactions use ^^Confidential Transactions^^, so both the type of assets and amounts transacted are hidden, *even to functionaries*. However, Functionaries can still see the from / to addresses involved - they only don't know *what* is being transferred. By default, all Liquid transactions use ^^Confidential Transactions^^, so both the type of assets and amounts transacted are hidden, *even to functionaries*. However, Functionaries can still see the from / to addresses involved - they only don't know *what* is being transferred.