Liquid Network

From CryptoMarketsWiki
Jump to: navigation, search
Liquid Network
Liquid-network-logo-resized.jpg
Founded October 10, 2018
Headquarters San Francisco, CA
Key People Samson Mow, chief strategy officer
Products Bitcoin trading platform
Twitter @_LiquidNetwork
Website Liquid Network

The Liquid Network is a platform designed by Blockstream to improve the settlement process for digital assets. Liquid's launch was announced on October 10, 2018.[1]

Overview

The Liquid Network connects numerous cryptocurrency exchanges, brokers, and various other financial institutions in a network. Some of the companies included in the network include Bitfinex, Bitmex, and OKCoin.[2] The Liquid Network uses its own digital token called "Liquid Bitcoin" (L-BTC), which is native (it cannot be traded or exchanged outside of the Liquid Network). Each L-BTC token is pegged to a regular bitcoin, which means the L-BTC token can be swapped out for a bitcoin at any time.[3]

The Liquid Network is designed to improve the speed and cost of settling large-volume, bitcoin-based transactions. It is technically a sidechain, or a blockchain that is built over an existing blockchain (in this case, the bitcoin blockchain). A sidechain begins as a carbon-copy of the blockchain it is attached to before it goes live. Transactions carried out on a sidechain don't need to be included in the main blockchain's blocks, so no network fees are incurred by transacting over the sidechain.

In essence, the Liquid Network is similar to the Lightning Network although, unlike the Lightning Network, the Liquid Network specifically aims to attract large financial institutions and exchanges, as it is designed to help settle high-volume transactions.[4]

References