Blockstream, led by Adam Back, is one of the companies working exclusively on building technology around the Bitcoin network. The company launched the Liquid Network in October 2018, which is a federated sidechain to Bitcoin’s blockchain. The sidechain was conceived as a method to help Bitcoin’s network scale better and improve transaction times.
The Liquid Core wallet provides a friendly alternative to using the command line, which is mostly used by tech-savvy users. With the newly-released software, sending and receiving Liquid Bitcoin (L-BTC) has become much easier with a user-friendly interface.
Liquid’s aim is to provide a blockchain for big industry players looking to settle transactions. Cryptocurrency exchanges, brokers, market makers, and other institutions are the primary users of the Liquid sidechain. As a federated sidechain, it offers them quick transaction settlement times, privacy, and security when executing orders.
The advantages provided by a federated sidechain come with the downside of centralization, however. Initial users consist of both companies contributing to operating the sidechain and 23 organizations. Well-known exchanges like Bitfinex, BitMex, Bitmax, OKCoin, SIX Digital Exchange, and others are part of the project, as well as other cryptocurrency establishments like Xapo, Altonomy or Atlantic Financial.
Besides offering a settlement layer pegged in value to Bitcoin (BTC), Liquid also enables tokenization of traditional assets — allowing users to quickly exchange assets on the blockchain. The unveiled wallet already includes support for managing Issued Assets from the same Liquid Core UI. The issuance of assets on the Liquid network will be implemented in the wallet UI at a later date.
For testing purposes of the Issued Assets functionality, the team has made available free beer tokens to be acquired, sold, or exchanged.
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Image courtesy of Twitter.