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Blockstream’s Samson Mow reveals plan to expand Liquid functionaries

Chayanika Deka



Source: Unsplash

“Liquid is a fork of Bitcoin itself, so you can audit the code and see how it functions,” said Blockstream CSO Samson Mow during his latest interview with BTC Sessions.

After three years of building, San Francisco-based startup Blockstream launched Bitcoin’s first-ever sidechain in the first week of October this year. Sidechains have been touted to be the holy grail for Bitcoin coders. And with this live blockchain, the network has finally opened up for all Blocksteam partners to leverage it for real transactions. Being able to carry large volumes of transactions, Liquid is available for large companies and exchanges that need to process an important number of large transactions.

While addressing the community’s concern over the ability of Liquid network to become a “fractional reserve” and how one would audit that, whether there were “not more L-BTC than Bitcoin” itself, Mow explained,

“You can run an elements core node and, that is, basically you would audit the Liquid blockchain. so you can actually monitor and check everything. We also have a block explorer, at that lets [users] explorer the Bitcoin blockchain as well as the Liquid blockchain and that’s how as an average user you can check to make sure.”

Mow also highlighted that users can monitor Federation Wallet and can view how much Bitcoin has been pegged and/or locked into the wallet. Liquid is a Federated blockchain, meaning there are a set of numbers of members on the network that are generating blocks and hence, a faster block time. Mow alluded that Liquid has a one minute block time which allows for final settlement in two minutes. He further stated that the reason for this was due to the fact that the involved parties are known and defined.

“It is centralized, in the sense that it is federated and the members of the Federation are fixed.”

The goal for Blockstream was to expand the Federation from the current functionary figures of 15 to hundreds. The CSO further explained that the firm launched Liquid with 15 functionaries who were running the hardware, revealing that Blockstream is planning to upgrade to expand the network and add more functionaries sometime next year.

Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.

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    BT Latierre

    October 15, 2019 at 10:56 pm

    The majority of Earth’s gold supply is presently inaccessible for technological uses in electronics, superconductive energy delivery, energy-efficient cooling systems, etc., because of gold’s continuing use as a monetary base. Most of the world’s reserves of gold were melted down into 400-troy-ounce London Good Delivery Bars or 1-kilogram People’s Bank of China bars, placed in vaults, and remain there. Occasionally some are transported from one vault to another.

    Blockchain accounting would make it possible for all that monetary gold to earn it’s keep by performing technological functions.

    If today’s gold holdings by the International Monetary Fund and the various nations’ central banks were divided up, there would be slightly more than 14 kilograms of Central Bank gold, for each Bitcoin that will ever be mined.

    Another way of looking at this fact, is that 1 Satoshi=14 micrograms of gold, if central banks agreed to such an arrangement.

    Once all that central bank gold is accounted-for, on the Blockchain, renting it out for technological uses would make perfect sense. Gold-lined pipes coated with superconductive ceramics could transport electrical energy and liquid methane or liquid hydrogen from place to place, earning a return on the investment.

    Such an arrangement would enable Bitcoin to become just as secure a store of value as gold itself. Inflationary fiat currencies backed by debts, would trade at a discount to Bitcoin. Markets would discount existing national debts and debt-backed fiat currencies against Bitcoin, while central banks would earn some revenue from the rental of their gold holdings for technological use, that will help with their burdens of national debt.

    Japan, the US, and the European Union began accumulating national debts a century ago, when many economists believed in Marxism and expected debt to wither away as a meaningless relic of the past. Carrying as large a national debt as humanly possible, seemed sensible at the time, because Marxian teaching held that the savings used to finance debt was the result of paranoid thinking by the hated Bourgeoisie, and the Marxist system of perfect sharing would displace it. The hard truth is that the hated Bourgeois were correct and Marx was wrong. Monetary systems are a measure of the trust that every person earns from his or her trading partners. The person who honestly earns significant wealth, does so by behaving reliably toward all trading partners. Even dishonest people who obtain wealth by force or fraud, go to great lengths to conceal the dishonest origins of their wealth, because they find it convenient to behave in a trustworthy manner when spending their money and trying to fit in.

    Correcting Marx’s error, we’re left with the fact that a debt is a promise to do something for someone, on which that person relies.

    The hundreds of millions of people who rely on a government-guaranteed pension of some sort, will be grossly disappointed to learn that the pension they earned by working, has been “borrowed” and squandered to pay for endless wars, and their government is offering them a lethal injection to save them the suffering of starving to death, because it’s promises to pay them a pension cannot actually be kept.

    Since that outcome is unacceptable, converting gold reserves into rental property and spurring the rise of new technologies that put the gold to use, makes for better policy. Central banks and the politicians who buy votes by borrowing money from them, must accept the discipline that a promise made must be kept. A Blockchain record of gold utilization makes possible it’s use in far-flung energy delivery networks, just as securely as it is, remaining in vaults.

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