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Update docs/liquid/liquid-part3.md

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@ -178,6 +178,7 @@ $ sudo ~/scripts/app compose elements exec node elements-cli -rpcuser=$E_RPCUSER
```
![](4-part3-pegout3.png)
Total cost was about 5500 sats for the peg-out (obviously I waited until it was very cheap). Of that, 5150 sats on BTC layer / 246 on Liquid / 110 sats for sideswap.io service
# Final Discussion and Ideas
@ -205,9 +206,11 @@ Each part of the Bitcoin ecosystem has its strengths and weaknesses, and often t
One of the biggest issues facing Liquid users is needing to trust the Federation members[^7]. One of the reasons why projects like Fedimint has gained in popularity is the idea of community-run mints. What if such a thing were possible with Liquid?
Well it is. Its entirely possible to use Elements in a way that connects to your own sidechain - and to configure with your own Peg-in script.
Well it is in theory. Elements can be used to create your own sidechain.
A brief sidebar about the name: **Elements** is the name node software and **Liquid** is the name of the chain. I mention this because its clear that Blockstream envisions a separation between the specific network and the software that runs it. Point being, you could create your own sidechain using Elements (maybe Plasma, in keeping with the elemental names?)
```
A brief sidebar about the name: **Elements** is the name node software and **Liquid** is the name of the chain. I mention this because its clear that Blockstream envisions a separation between the specific network and the software that runs it. Point being, you could create your own sidechain using Elements (maybe Plasma, in keeping with the elemental names?)
```
The basic process for creating your own sidechain would be:
@ -226,10 +229,10 @@ In theory, you should now have your own federation on your very own sidechain.
## Final Questions and Thoughts
* Liquid has value in being a testing ground for changes to be real-world tested before they make it into BTC. For example many of the advanced OPCODEs that are argued for inclusion into BTC *already exist* in Liquid[^11].
* Given the above, proponents of Covenants should build some of their use-cases on Liquid. The big debate happening around Covenant OPCODE inclusion is one side is saying: *Show us use-cases of this solving the problems you claim it can* and the other responding *we need the OPCODEs to build these things*. An obvious solution is for Covenant proponents to go build their use-cases on Liquid. Obviously Blockstream has voted *for* these OPCODEs, so you find a friendly ecosystem to your ideas.
* Could Fedimints / eCash mints find ways to utilize custom sidechains based on Elements as a way to provide protection against frac-reserve / debasement?
* Liquid has value in being a testing ground for changes to be real-world tested before they make it into BTC. For example many of the advanced OPCODEs that are argued for inclusion into BTC *already exist* in Liquid[^11]. This transforms Liquid into being something of a "Beta-test" chain for BTC.
* Given the above, proponents of Covenants could build some of their use-cases on Liquid. The big debate happening around Covenant OPCODE inclusion has stalled in a chicken-v-egg style standoff. One side is saying: *Show us use-cases of this solving the problems you claim it can* and the other responding *we first need the OPCODEs to build these things*. A potential solution is for Covenant proponents to go build their use-cases on Liquid. Obviously Blockstream thinks these OPCODEs are safe.
* Could Fedimints / eCash mints find ways to utilize custom sidechains based on Elements as a way to prove to users that they are not debasing eCash tokens via Frac Reserve? (record eCash issuance as asset issuances on federated sidechain?)
* Could the community spin up our own Federated version of Liquid?
[^1]: BlockStream Green, AQUA, Anser (web wallet), Specter, Marina (web wallet)
[^2]: Atomic Swaps allow parties to exchange different tokens directly without the need for a 3rd party, eliminating most of the risk of fraud and counterparty default.In fact, Blockstream has a tool to simplify using it.
@ -241,4 +244,4 @@ In theory, you should now have your own federation on your very own sidechain.
[^8]: [https://github.com/ElementsProject/elements/blob/master/README.md](https://github.com/ElementsProject/elements/blob/master/README.md)
[^9]: [https://elementsproject.org/elements-code-tutorial/block-creation](https://elementsproject.org/elements-code-tutorial/block-creation)
[^10]: [https://elementsproject.org/elements-code-tutorial/sidechain](https://elementsproject.org/elements-code-tutorial/sidechain)
[^11]: Liquid has enabled OP_CAT and XXXX which can provide same functionality requested by vault / covenenant proponents
[^11]: Liquid has enabled OP_CAT, OP_CHECKSIGFROMSTACK (CSFS), OP_INSPECTCURRENTINPUT, OP_INSPECTINPUT, OP_INSPECTOUTPUT, OP_TAPTWEAK, OP_MUL64, OP_DIV64, OP_SCALARADD, and OP_SCALARMUL