b0xxer/web
1
0
Fork 0
Code Issues Pull Requests Packages Projects Releases Wiki Activity

Update docs/liquid/liquid-part1.md

Browse Source
This commit is contained in:
b0xxer 2024-01-21 10:53:15 -06:00
parent 3c45abfc82
commit a48ac86dad
1 changed files with 6 additions and 10 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

16
docs/liquid/liquid-part1.md
View File

@ -9,7 +9,7 @@ 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.
Block signing happens in a round-robin style arrangement. ^^Consensus requires 11-of-15 to be available^^. Block signing happens in a round-robin style arrangement - consensus requires 11-of-15 to be available.
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. The signing method the functionaries use is known as [ROAST](https://eprint.iacr.org/2022/550.pdf) (Robust Asynchronous Schnorr Threshold Signatures). As stated:
@ -22,13 +22,13 @@ 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 when there are a very large numbers 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. 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.
**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 is issued 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 (who sign the transactions), 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.
**Liquid Ecosystem and Roles** **Liquid Ecosystem and Roles**
@ -39,7 +39,7 @@ Here are some charts showing current ecosystem members and the roles various mem
### Assets ### Assets
One of the unique aspects of Liquid Network is that it supports Asset Issuance. Any full-node can issue their own Assets (only requirement is to have needed L-BTC to pay for signing fees). These assets fall into the following categories / use-cases: Liquid supports Asset Issuance. Any full-node can issue their own Assets (only requirement is to have needed L-BTC to pay for signing fees). These assets fall into the following categories / use-cases:
* Tokens (e.g. arbitrary token issue, stablecoin, etc) * Tokens (e.g. arbitrary token issue, stablecoin, etc)
* Swaps (e.g. atomic swap of Token A for Token B) * Swaps (e.g. atomic swap of Token A for Token B)
@ -49,9 +49,7 @@ One of the unique aspects of Liquid Network is that it supports Asset Issuance.
### Additional Opcodes ### Additional Opcodes
In order to support the Smart Contracts and Convenants seen above, Liquid includes several opcodes, in addition to the ones already supported by Bitcoin: At its core, Liquid is basically "BTC plus special OPCODES less Mining". In order to support the Smart Contracts and Convenants seen above, Liquid reintroduces some safe but disabled opcodes, including string concatenation (CAT), substrings, integer shifts, and several bitwise operations ([see here for more](https://github.com/ElementsProject/elements/blob/master/doc/tapscript_opcodes.md?ref=blog.blockstream.com)).
It reintroduces some safe but disabled opcodes, including string concatenation (CAT), substrings, integer shifts, and several bitwise operations ([see here](https://github.com/ElementsProject/elements/blob/master/doc/tapscript_opcodes.md?ref=blog.blockstream.com)).
A new DETERMINISTICRANDOM operation which produces a random number within a range from a seed. A new DETERMINISTICRANDOM operation which produces a random number within a range from a seed.
@ -67,9 +65,7 @@ Liquid uses a variation of BTC Core program known as Elements, much of the setup
### Running Elements on Umbrel ### Running Elements on Umbrel
* Meet requirements (1TB disk for BTC / 25GB disk for Liquid / >8GB RAM[^2]) * Meet requirements (1TB disk for BTC / 25GB disk for Liquid / >8GB RAM[^2])
* Install Bitcoin 'App' * Running and Synced Bitcoin 'App'
... Go take a week+ break while it downloads ...
* Install Elements 'App' * Install Elements 'App'
... Go take a several hour break while it downloads ... ... Go take a several hour break while it downloads ...