We recently announced the launch of Blockstream company sidechained bitcoin called Liquid Network. I should say that the event is not generated significant hype, but we are talking about the world’s first commercial sidechained.
Who directed Liquid Network
A sidechained Liquid is designed for those who have a need of buying or selling large amount of bitcoins, such as exchanges. Some of the biggest names in the cryptocurrency industry have become partners Liquid Network. It’s companies like Atlantic Financial, OkCoin, Xapo, Bitfinex, Bitmax and BitMEX. Token sidechained Bitcoin is called a Liquid (L-BTC), and it is supported by bilateral reference to bitcoin.
Large institutions will be able to use a Liquid Network for fast and reliable processing of large bitcoin transactions. In the core network of the bitcoin this transaction is less reliable. Network Lightning Network was not designed for large transactions, and there can be delays. In addition, bandwidth limits. Technical Director Paolo Ardoino Bitfinex explains:
Our traders need speed. Liquid perfectly done. Quick settlements in sidechained allows our traders to react faster to replenish deposits and withdraw bitcoins to conduct effective arbitration operations and even improve the pricing system due to rigid spreads.
The sidechained and prospects
Liquid Network will help conduct a quick, confidential and secure transactions. In mannete bitcoin owner of the wallet easy to track via IP address by using basic technical tools, and wallets can be described as rather pseudoanonymity than confidential. However, in the Liquid Bitcoin Network, the number and the type of asset known only to the parties to the transaction.
The sidechained also is a function of the production assets, which will allow you to tokenservice Fiat money, precious metals, securities, reward points, etc. Perhaps one of the biggest advantages of Bitcoin Liquid Network is that the units sidechained appear after every minute while in the bitcoin blockchain the average interval is ten minutes. If the secure bitcoin mining Protocol PoW (proof of performance), the Liquid — a combination of functional features.
Of course, the sidechained Liquid Network — a welcome novelty for the whole ecosystem of the home cryptocurrency that is moving forward, despite any difficulties. Bitcoin transactions are now fast and cheap, and the combination of Liquid and Lightning greatly improves the scalability of coin. Be only such problems as privacy is the main bitcoin network (perhaps solved by means of another sidechained), and an inefficient mining process based on PoW. It is very likely that the Liquid Network will be able to do a lot for public recognition and universal application of bitcoin.
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