web/docs/liquid/liquid-part3.md
2024-02-01 06:24:16 -06:00

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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](https://stacker.news/items/399400): Overview, Installation, and first Peg-In
* [Part II](https://stacker.news/items/407806): Asset Creation and Configuration
* Part III (this): Advanced Topics and Peg-out
# Advanced Asset Topics
[In Part II](https://stacker.news/items/407806), 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.
## Atomic Swaps
## Securities / Transfer Restricted / etc
# Pegging Out
# Discussion
## Lightning Integration
## Using Liquid with BTC / LN
## Building Your Own Federation