From 1d651c860e2155fa7ef26beb140d91af5fb9b975 Mon Sep 17 00:00:00 2001 From: b0xxer Date: Fri, 2 Feb 2024 12:29:43 -0600 Subject: [PATCH] Update docs/liquid/liquid-part3.md --- docs/liquid/liquid-part3.md | 11 ++++++++--- 1 file changed, 8 insertions(+), 3 deletions(-) diff --git a/docs/liquid/liquid-part3.md b/docs/liquid/liquid-part3.md index 0b160de..5c74d8b 100644 --- a/docs/liquid/liquid-part3.md +++ b/docs/liquid/liquid-part3.md @@ -12,14 +12,19 @@ This is a multipart DeepDive that will focus on the Liquid Sidechain. It will be One of the most basic usecases for a custom issued asset is to exchange it for something else. For purposes of discussion, let's assume that a company - say StackerNews Airline - wants to issue their clients "Air Miles" for each flight they take. The idea is clients will accrue these *points* and then be able to exchange them for either discounts off future flights or direct cash (ie. USD / BTC). -If we start thinking like a developer for second, all of this implies lots of little things to be built: We would need an accounting system to manage the points, we would need some way to issue these points to the clients, who themselves would need some a way to store and manage their points. Further, there would need to some type of middleware to handle the exchanging of points for cash. Also there is a big question of security...could development staff - either intentionally or unintentionally - wind up giving away millions in points? Sure, Stacker News could just do all this themselves using SQL, but lets suppose that since they were clever boys & girls, so they wanted to do as little of the hard work as possible. +If we start thinking like a developer for second, this implies many things to build: + * An accounting system to manage the points + * A way to issue these points to the clients, who themselves would need some a way to store and manage their points + * Middleware to handle the exchanging of points for cash + * Security? How do we secure this? How to reduce fraud as much as possible? + +Sure, Stacker News could just do all this themselves using SQL, but lets assume that since they were clever boys & girls, they wanted to do as little of the hard work as possible. Liquid would make a great solution for this case. They could simple direct their users to download one of the existing Liquid wallets[^1] and use the Liquid sidechain as the "accounting system" for their asset. - ## Atomic Swaps -Atomic Swaps allow two parties to exchange different tokens without the need for a 3rd party, eliminating most of the risk of fraud or ounterparty default. +Atomic Swaps allow two parties to exchange different tokens without the need for a 3rd party, eliminating most of the risk of fraud and counterparty default. In this case, our Customer has earned 1 SND token (which for our purposes is our pretend airline mile token) via previous purchases and he wants to exchange that for L-BTC. How do we do that?