SatoRi on Nostr: KYC is attached to *you* .. you can break the traceability of your stack, but you ...
KYC is attached to *you* .. you can break the traceability of your stack, but you can't be unKYC'd ..
Liquid Network
Liquid Network is extremely undervalued. People are still thinking about coinjoins and arguing among themselves when they have a much cheaper method.
Remember that transactions on Liquid are confidential, only the signer of the transaction and the receiver can know what amount has been sent, for them Borromean ring signatures are used.
Manual for Dummies:
- You make a peg-in of the amount you want to anonymize, if you have an elements node (Liquid node) or use the decentralized Exchange Tdex the cost will be only the cost of the chain transaction, if you do not have any of the above available you can make a peg-in with sideswap for 0.1%.
- Once you have converted your btc inside Liquid to L-BTC you make a peg-out with sideswap, do not make a peg-out of the same total amount that you have made the peg-in and try to space it in time if there are several. The cost of the sideswap peg-out is 0.1% plus the fee of the chain transaction.
One way to avoid also performing the peg-in is to buy L-BTC directly for example on Bisq.
In the best case, the whole operation will cost you the fee of two blockchain transactions and 0.1% in the worst case 0.2% plus the two blockchain transactions, I recommend you to set up your own node elements or use the decentralized Exchange tdex to perform the peg-in without permission and avoid that 0.1%.
When you make a peg-out you receive btc that are retained in the federation, the allocation is random, so seen from the outside, Liquid is like a classic mixer but without centralized custody as it is federated, your coins enter the federation and when you leave with a peg-out you are given other coins that are not your initial coins thus breaking the heuristics of your initial coins.
All this is done without any KYC, you can increase the anonymity using tor or a vpn in sideswap so that there is no trace of your ip.
De-linking and confidential transactions on Liquid are highly underrated!
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Methods to obtain privacy in Bitcoin:
- Joinmarket (decentralized Coinjoin).
- Payments with Lightning (payments through routing are totally anonymous, good method for example to put bitcoins coming from coinjoins in exchanges, you must open a private channel with a good node and through this route to the exchange).
- Liquid Pegouts with sideswap (it is like a swap and you break traceability)
- Bolts (swaps between chains and you also lose traceability)
- Joinstr (Coinjoin through Nostr, soon to be released on the mainnet).
- Mercury Layer (Coinswaps, soon to be released as well).
- Bitcoin Teleport (decentralized Coinswaps with an architecture of makers and takers similar to joinmarket).
