...
The primitives which Blockstream are working on would allow a lot more flexibility in distributing value to sidecoins and managing risk in doing so. Also, by providing robust reference implementations and being available to audit (for a fee I suspect) they provide a very valuable service to end-users (like me) who are trying to judge these risks.
Sidestep. Skip. Dodge. You move better than Mohammed Ali.
They are only primitives because they haven't got a working solution. They grabbed on to LN like a man in the bottom of a well grabs onto a ladder lowered down to him. I'd say they are under some pressure, no?
I forget that not everyone is familiar with systems development. A 'primitive' is a generic and basic function though they are often fairly cutting edge. For a system which is more than trivial, a competent developer will start out by building 'primitives' (unless someone else has already done so which is common.) Upon these one can build a system to solve specific problems and also build other systems to solve other problems.
Anyway, you still havent explained how valuable transactions will be catered for in terms of liquidity and credit risk. Lets say its not a bank, lets say instead its Daddy Warbucks from Annie!
What's there to explain? A sidecoin is just a Bitcoin due to the 2-way peg. The 'liquidity' is just what Bitcoin people are willing to peg to a particular sidechain. There is no 'credit' so there is no 'credit risk'. There are plenty of other risks associated with fraud, accidents, mis-management, etc. This is why an entity (e.g., Blockstream) consisting of proven, trusted, and skilled people is a valuable thing.