Blockstream launches the Liquid Network
October 12, 2018 6:45 am,
Blockstream has announced the launch of the Liquid Network which is the world’s first production Bitcoin sidechain. The Liquid will now be used to carry large volumes of transactions at a higher speed for several of Bitcoin’s largest companies.
Blockstream is the San Francisco startup and is one of the driving forces behind ensuring that the Bitcoin network stays in good working order by providing funding for the core client. Due to many challenges and volatility of Bitcoin’s network, Blockstream designed the Sidechains to provide a higher level of flexibility about introducing new features that are interoperable with the Bitcoin network. In addition to this Blockstream also proposed the Sidechains to have their native cryptographic token that would be tied to the Bitcoin. Blockstream’s developers refer to these as pegged Sidechains.
The Sidechain technology for Bitcoin is meant for addressing the scalability issues of the Bitcoin network while providing faster settlements and improved transaction confidentiality. The transactions done over the Sidechains are not included in the primary Blockchain network. Sidechain also helps to considerably bring down the network fees incurred.
About Liquid Network:
The liquid network is a federated sidechain. It is not the real Sidechain rather it is an intermediary Sidechain which facilitates instant swap of Bitcoin for other Sidechain coins without depending on any third-party. It is built in another layer and not on the live Bitcoin’s Blockchain. It allows for a 1-1 exchange of Bitcoin. The Liquid Network was built specifically to address the particular needs of exchanges and enables the rapid, confidential and secure transfer of funds between participants, providing a solution to the inherent problem of a delayed transaction on the Bitcoin network.
Liquid’s instant settlements will allow our traders to achieve faster Bitcoin deposits and withdrawals, more efficient arbitrage, and even better pricing. This Liquid Network targets large financial institutions and exchanges, which will be dealing with large transactions and high volumes.
The Liquid Network uses a native asset, called Liquid Bitcoin (L-BTC). L-BTC acts as a two-way peg to BTC, which can be cashed through the network at any time. This native settlement asset allows for improved privacy as well as speed.