In my opinion, Liquid is a very important part of the entire Bitcoin ecosystem. So news of a successful attack is negative news... Yes, of course, Bitcoin's base layer wasn't attacked. Satoshi Nakamoto created a very well-designed and highly secure system! 🙋

Nevertheless, a successful attack on the Liquid system is a significant event. There's been a lot of talk lately about the need to reform Bitcoin. Scaling within the base layer is impossible. And once Bitcoin becomes secure against quantum computers, we risk an even slower and more efficient blockchain. One option for scaling Bitcoin is sidechains. However, the risks of hacker attacks are now obvious to everyone.

The recent surge in successful hacker attacks is no coincidence. Hackers are using advanced AI models. This can only be countered if developers gain access to these models before hackers do. 🧑‍💻

It also comes (too) soon after the Coldcard hack. And after the BIP 110 crap.

And even though a reasonably informed potential investor will understand that in the liquid hack no user funds were lost and it's not an issue of Bitcoin itself, it still gives the bad feeling that the crypto ecosystem is not mature enough, and I'm not talking here about some random altcoins made yesterday.

And it also gives a big warning to the potential new businesses that even small and old mistakes are found out nowadays easily (especially with help from AI) and exploited very fast.

Yeah I understand the importance of Bitcoin wallet and how closely it ties to Bitcoin
I'm still finding it hard to with the line that a vulnerability exploited in a wallet
Is considered a Bitcoin hack.
Or what you mean as Bitcoin hack is in respect to the entire Bitcoin system.
Which means the Blockchain or it's protocol has never been hacked but a part of the system has.

According to what I can deduce, Bitcoin Blockchain wasn't hacked, instead, it was a side network built on it that got hacked.

So it's better to still stick to the old system of network that has a solid reputation and good security standing than try to delve into side networks which is just like a leech on the main Bitcoin Blockchain system and still without a solid or even near solid reputation as the mainnet.

Am just concerned that programmers have to get really sophisticated when it comes to building new programs like side chain on the existing network because hackers seem to know how to exploit loopholes with their tools, I wonder what happens when quantum computers come into play, what would be the fate of investors with large portfolio in the mainnet.
Developers and programmers really need to learn to use very complex softwares if they come up with new ideas because it does not look like they are ready for what quantum computers can do if it gets into the hands of hackers.

But actually that Liquid network is been built or created on Bitcoin. This is a sidechain which has been develop which is peg on BTC.

The difference between the Lightning network is this is decentralized and trustless. While the Liquid network rely on the federation of trusted members. This is the reason why Lighting network has been recognize to be a Bitcoin native rather than Liquid.

Maybe the only difference is Liquid may have or serve different purpose, but that network still part of Bitcoin.

Just another sidechain that attached itself to Bitcoin I assume, the inner workings of their blockchain is different and more vulnerable because of smart contract built on Elements.

Even if the sidechain peg their wrapped BTC to real BTC, I would not consider it as part of Bitcoin, maybe someone else do.

Yeah that was being hypocrite, taking 15% hostage as a "bug bounty" without consent nor agreement and calling themselves white hat. If they were truly white hat they would have reported the bug in private and get awarded after the fact.

I do more investigation, I am convinced. You are right about it.

According to Liquid network post on X:
The Liquid Network has entered the next phase of its controlled resumption. As a precautionary measure, block production has resumed without transactions while the network is monitored to confirm full stabilization.

https://x.com/Liquid_BTC/status/2098025275921490281