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DeepDive into Liquid: Part III - Advanced Asset Functions, Peg-Out, Discussion
This is a multipart DeepDive that will focus on the Liquid Sidechain. It will be released in 3 Parts:
- Part I: Overview, Installation, and first Peg-In
- Part II: Asset Creation and Configuration
- Part III (this): Advanced Topics and Peg-out
Advanced Asset Topics
In Part II, we focused on issuing Assets. Now let's look at the ways you can use assets.
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.
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.