diff --git a/docs/liquid/liquid-part3.md b/docs/liquid/liquid-part3.md index d716b2d..0b160de 100644 --- a/docs/liquid/liquid-part3.md +++ b/docs/liquid/liquid-part3.md @@ -19,15 +19,15 @@ Liquid would make a great solution for this case. They could simple direct their ## Atomic Swaps -So our client has 1 `StackerNewsDemo-1` token in their wallet (which for our purposes is our pretend airline mile token) and he wants to exchange that for L-BTC. How do we do that? +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. -Obviously, we could build some type of webservice that had SQL databases and nodejs files that accept Asset A and then issued Asset B once received...however as we said our StackerNews crew is smart and therefore prefers to do *less hardwork* +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? -Luckily, due to the additional OPCODEs in Liquid, it supports atomic swaps between assets. In fact, Blockstream has a tool to simplify using it (obviously the steps we do here manually with the tool would be automated within the server / client in production). +We could build some type of webservice that had SQL databases and nodejs files that accept Asset A and then issued Asset B once received...however as we said our StackerNews crew is smart and therefore prefers to do *less hardwork*. Moreover all of the above lends itself to risk of fraud and counterparty default. -Obviously to do a swap, we will need another wallet, as you can't swap between the same wallet (you can refer to individual wallets in the swap-tool URL connect string by using the `http://user:password@localhost:7041/wallet/walletname` path) +Luckily, due to the additional OPCODEs in Liquid, atomic swaps between assets are possible. In fact, Blockstream has a tool to simplify using it. -In my case, I have 2 nodes each running `elementsd` server (Umbrel and another). So I will use that, but point is this can be done one a single node by setting up mutliple wallets and using distinct URL connect strings. +Obviously to do a swap, we will need another wallet, as you can't swap between the same wallet (you can use the *same node* but use *different wallets*. You can refer to individual wallets in the swap-tool URL connect string by using the `http://user:password@localhost:7041/wallet/walletname` path). In my case, I have 2 nodes each running their own `elementsd` server (Umbrel and my desktop). So I will use those, but point is this can be done one a single node by setting up mutliple wallets and using distinct URL connect strings. Before we start, let's look at state of our 2 wallets: @@ -45,7 +45,7 @@ Before we start, let's look at state of our 2 wallets: }, ``` -For our example, we can assume that StackerNews Airline (Node 1) is willing to accept a SND-1 token and return to the client 23,000 sats (approx $1 USD currently). So Node1 makes the following proposal +For our example, we can assume that StackerNews Airline (Node 1) is willing to accept a SND token and return to the client 23,000 sats (approx $1 USD currently). So Node1 makes the following proposal ``` # StackerNews Airline, Inc. @@ -100,12 +100,14 @@ Now lets review the state our wallets post swap: ## Securities / Transfer Restricted / etc -# Pegging Out - -# Discussion - ## Lightning Integration +What if you have no desire to create tokens, securities, etc...can you still make use of Liquid? + +Yes, probably one of the best ways to do that is to use it as a *staging area* for opening Lightning channels. In fact, both Blockstream Green and the newly announced (more user friendly) AQUA both do that under-the-hood. + +One of the main + ## Using Liquid with BTC / LN ### Comparing eCash / Lightning / Liquid / BTC @@ -124,7 +126,11 @@ Now lets review the state our wallets post swap: |Likely Threat:| Debasement or Mint rug | Theft of funds while offline | Federation censorship | Losing keys / unspendable UTXO for fees |Maturity: | 2023-2024 | 2018 | 2018 | 2009 - - ## Building Your Own Federation +## Pegging Out + +# Final Discussion and Ideas + + +