When the u t xo flipped over into emergency mod you would just need to sign a bit coin transaction with two out of those three block trem keys. So in practice, this means that someone would have to go wherever those keys are physically custodied and compromise the security around them. We don't know who has those keys, how they were created, where they're held, or what security procedures are around them. But we do know that the main threat vector here, again, is employees. The threat vector is the people who created those keys in the first place....
In this episode, Su and Hasu are joined by James Prestwich, one of the leading technical experts and thinkers in this space.
Topics covered:
- What is Blockstream Liquid
- The bug James found
- Disclosure and aftermath
- Sidechains, channels, plasma, and rollups
- How Bitcoin isolates itself from innovation happening on other chains (recommended reading)
- Bitcoin in DeFi
Su Zhu is the CEO and CIO of Three Arrows Capital.
Hasu is a cryptocurrency researcher and writer.
Together, they publish on Deribit Insights and uncommoncore.co.