muneeb.btc Profile picture
24 Oct, 17 tweets, 3 min read
I've been politely responding to criticism from @adam3us @notgrubles for weeks.

It's time to set the record straight RE Liquid vs. Stacks.

Please retweet to help educate people.

Tweet thread👇
1/ First of all, I highly respect the contributions of Adam Back and Grubles. We can disagree on some topics, but that does not take away my respect for them.

Let's dive into their criticism of Stacks and how it compares to the work they prefer: Liquid.
2/ Liquid is a federated (closed) network where you trust a handful of signers to operate the network and secure your LBTC (a Bitcoin-derived asset). 

Liquid has no connection to Bitcoin other than using LBTC, i.e., no connection for consensus, smart contracts, security, etc.
3/ Stacks, however, is an open network; anyone can be a miner. There are Bitcoin-derived assets (like xBTC) on Stacks as well.

Stacks has direct connection to Bitcoin at the consensus level, contracts interact directly with Bitcoin state, and Bitcoin secures Stacks fork history.
4/ This unique connection to Bitcoin enables use cases like (a) earning BTC rewards, (b) native BTC swaps, (c) lending apps where BTC stays on the Bitcoin main chain, etc. These are simply not possible on Liquid.
5/ Adam and Grubles criticize an open network that enables unique Bitcoin apps and smart contracts for Bitcoin.

I find this puzzling, frankly, as they're intelligent people who should understand the significance of the Stacks open network and the tech capabilities of Clarity.
6/ This leads us to the second part of the argument, which says that the criticism is not about Stacks the technology (we can all agree that it's unique and powerful), but the criticism is about Stacks (STX) the gas asset.

Let's examine this argument.
7/ Liquid R&D and development is funded through (private) equity offerings of Blockstream shares.

Stacks early R&D and development was funded through a SEC-qualified public token offering.

What’s the difference?
8/ Only a handful of rich people (VC funds, high net worth individuals) can participate in Blockstream equity offerings. Ordinary people cannot.

The average Joe, however, could participate in the Stacks offering, even in the US. It was open to the public.
9/ Both an equity offering and a SEC-qualified token offering are legal offerings in the US; both are compliant.

The rich people will make money on Blockstream shares. The ordinary people can benefit from the Stacks offering. (Currently, the $0.12 participants are up 1,700%.)
10/ The development of Liquid remains dependent on a single company. Stacks decentralized upon mainnet launch with 30+ entities in the ecosystem now; no single entity responsible for developing or operating the network.

Single point of failure vs. an open decentralized network.
11/ OK, but utility tokens are different. Why is the gas token needed?

It's needed to:

(a) pay for executing smart contracts (computations are not free).

(b) incentivize miners to operate the network (otherwise, you end up with closed/federated networks like Liquid).
12/ For the “we need no gas assets” crowd, you can fork the open-source Stacks code and remove the gas asset, but such a network will not function.

This is an open challenge to anyone to try this. If you believe so strongly that such networks can work without gas, please fork!
13/ The open nature of Stacks is already attracting devs and users. The Liquid block explorer currently shows 1 or 2 tx per block.

Stacks has 1,113 tx pending in mempool with blocks running at full capacity. Open source devs are working hard to 10x the network capacity in Nov.
14/ Stacks is gaining momentum.

Hiro's API now gets 210M requests per month; there are 370,583 unique wallet addresses and 1,341 Clarity smart contracts deployed on mainnet.

This traction dwarfs any other federated/side chain in Bitcoin.
15/ The next time they criticize Stacks, please ask them (a) why do you prefer closed networks to open networks, (b) restricted VC equity offerings to open offerings for ordinary people, and (c) networks disconnected from Bitcoin to native Bitcoin apps and contracts for Bitcoin.
16/ In the end, critics don't matter. The free market and the developers decide what solutions get adopted.

Smart contracts for Bitcoin are a revolutionary idea. Let's keep building and growing the Bitcoin economy.

Open networks, FTW 🙌

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with muneeb.btc

muneeb.btc Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @muneeb

24 Aug
Decentralized lottery game on Bitcoin.

How can this work? Tweet thread👇
1/ Satoshi Dice showed in 2012 how popular Bitcoin-based betting games could get.

Now with smart contracts for Bitcoin, developers can build much more sophisticated games. Let’s walk through a Powerball-like game.
2/ First, I’m not a lawyer, and any developer building such lottery games should consider appropriate laws in local jurisdictions. 

I’m interested in the technical design and possibilities.

Putting the legal disclaimer aside, let’s dive in!
Read 8 tweets
19 Aug
The opportunity window for starting new layer-1 blockchains was in 2017-2018.

Some thoughts on the L1 landscape👇
1/ First, let’s separate Bitcoin (sound money) from smart contract platforms.

New money layers (e.g., Bitcoin forks) have failed miserably.

Bitcoin is the clear winner for sovereign money (with recent attempts from Ethereum to compete there.)
2/ Smart contract platforms, however, remain a rapidly growing and competitive market.

The opportunity window for starting new L1 blockchains for smart contracts was in 2017-2018. These platforms typically require 2-3 years of development before mainnet launch.
Read 10 tweets
2 Aug
City governments can embrace Bitcoin and crypto faster than nations.

Miami Mayor @FrancisSuarez is experimenting with crypto to give Miami a Bitcoin-yielding treasury.

A thread on cities and crypto👇
1/ There are at least two ways city governments can embrace crypto: 

(a) cities can put Bitcoin on their balance sheet, and

(b) they can issue a "governance token" to engage their citizens.
2/ Cities like NYC run on billions of dollars. Like public companies, city governments can also diversify their cash balances into Bitcoin.

@michael_saylor wrote the book for Bitcoin corporate treasuries; forward-looking mayors like Suarez might write a similar book for cities.
Read 9 tweets
30 Jul
“When everyone zigs, Stacks zags.”
— Nick Grossman, USV

The popular opinion in crypto is that proof-of-stake is the future. Stacks recycles Bitcoin’s PoW and avoids PoS.

Why do we prefer PoW? Tweet thread👇
1/ First of all, intelligent people I respect, e.g., Silvio Micali (Algorand), are working on proof-of-stake, so clearly, I think it’s a design space worth exploring.

Given that enough smart people are already exploring PoS, I’m more interested in researching other designs.
2/ I don’t like slashing conditions in PoS. An event like a network partition (however rare that might be) can slash funds of honest nodes.

That’s why in Stacks, we had a design requirement not to have any slashing conditions.
Read 8 tweets
26 Jul
Native Bitcoin swaps are now live!

Why is this a big deal? Tweet thread👇
1/ What is this?

Users can do trustless BTC swaps to stablecoins, derivatives, perpetuals, and other crypto assets.

All by pure Bitcoin transactions on the main BTC chain.

Users can purchase any digital assets (like NFTs and decentralized domains).
2/ This is a big f—king deal. Why?

Bitcoin has established itself as digital gold, but you can’t use BTC to trade without going through:

(a) centralized exchanges, or
(b) alt blockchains w/ wrapped BTC

Not anymore!
Read 8 tweets
30 Jun
Coindesk reported that USDC is planning to expand to Stacks.

This is a narrative violation that DeFi is not possible in the Bitcoin ecosystem.

So what are the benefits of USDC on Stacks? Thread👇
1/ USDC transactions would benefit from the security of Bitcoin.

USDC transactions on Stacks automatically settle on Bitcoin. To rewrite the history of these transactions, you’d need to rewrite the history of Bitcoin.
2/ Availability of USDC would open doors for USDC/BTC atomic swaps, i.e., with BTC on the main Bitcoin chain.

(@fmdroid already has a prototype of STX/BTC atomic swaps.)
Read 7 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!