In this conversation, Andrew Poelstra discusses the recent launch of Simplicity on Liquid, a federated sidechain of Bitcoin. He explains the technical aspects of Liquid, its advantages, and how Simplicity serves as a new scripting language that enhances expressivity and formal verification capabilities. The discussion covers potential use cases for Simplicity, including advanced covenant implementations, ZK verification, and its role in capital markets and asset issuance. The conversation also touches on the implications of stablecoins moving to their own chains and contrasts Liquid with other Layer 2 solutions like Lightning.

Takeaways

🔸Liquid is a federated sidechain of Bitcoin.

🔸Simplicity enhances Bitcoin's scripting capabilities.

🔸Formal verification improves security for developers.

🔸Simplicity allows for advanced covenant implementations.

🔸ZK verification can be done on Liquid.

🔸Liquid serves as a technology demo platform.

🔸Stablecoins are exploring their own chains.

🔸Liquid is not primarily a scaling solution for Bitcoin.

🔸Liquid supports multiple asset types.

🔸Simplicity can facilitate new financial products.

Timestamps:

(00:00) - Intro

(01:57) - What is Liquid? 

(04:36) - What is Simplicity?; Enhanced expressivity on Bitcoin

(11:48) - Implications of ‘formal verification’ for developers building on Liquid and Bitcoin? 

(17:00) - What does Simplicity enable people to build?

(18:59) - What is a Sighash flag? 

(26:41) - Sponsors

(28:35) - Could Shielded CSV be built using simplicity?

(33:32) - Zero Knowledge proofs verification with Simplicity

(43:15) - Use cases of Simplicity: Limit orders and Algorithmic trading in DeFi

(51:18) - Liquid's role in asset issuance and capital markets

(56:55) - Liquid vs. Stablecoins issuing their own Layer 1 chains

(1:02:22) - Liquid vs. other Layer 2 solutions

(1:07:53) - Closing thoughts; Developer engagement with Simplicity 

Links: 

• https://simplicity-lang.org/

• https://blog.blockstream.com/simplicity-launches-on-liquid-mainnet/

• https://github.com/BlockstreamResearch/SimplicityHL/tree/master/examples 

• https://github.com/BlockstreamResearch/SimplicityHL 

Sponsors:

• Bold Bitcoin

• CoinKite.com (code LIVERA)

Stephan Livera links:

• Follow me on X: @stephanlivera

• Subscribe to the podcast

• Subscribe to Substack