The Liquid Network is a Bitcoin sidechain-based settlement network that facilitates fast and confidential transactions among users and trading platforms.
Who is it for?
While open to anyone, the Liquid Network is especially useful for traders and exchanges as it allows for fast Bitcoin transactions and the issuance of digital assets. Liquid’s one-minute block times and two-minute transaction finality provide a promising alternative during times the Bitcoin network may be clogged, making the Liquid Network a strong contender for an upcoming bull market.
Who is part of the Liquid Network?
Some of the biggest and most trusted names in the game are part of the Liquid Network. These include companies such as Bitfinex, Huobi, bitbank, Prycto, and SIX Swiss Exchange, Switzerland’s principal stock exchange. Of course, BTSE is proud to be a launch partner of the Liquid Network as well.
What are the Liquid Network’s key features?
Speed
L-BTC (Liquid Bitcoin) block times sit at 1 minute, and transfers are settled within 2 minutes. This means traders can move funds rapidly between their own wallets and exchanges or from exchange to exchange without the added stress of long confirmation times. This can greatly help with arbitrage opportunities.
Liquid Assets
Anyone can issue new assets on Liquid, including stablecoins and security tokens. These assets can then be moved and traded freely on the network. Asset issuance on Liquid is very simple and uncomplicated which further mitigates the risk of added attack surfaces through complicated smart contracts.
Confidentiality
Asset types and amounts are hidden by default on the Liquid sidechain, keeping your data secure and preventing the front-running of large orders.
Secure
Each asset can be swapped with any other asset on Liquid using the open-source Liquid Swaps Tool. This minimizes counterparty risk and allows you to trade more confidently.
Which assets are supported on Liquid?
Anyone can issue an asset on Liquid. Some examples of Liquid assets are: Liquid Bitcoin, Liquid USDt, and the BTSE Token.
How does Liquid work?
Two-Way Peg
All Liquid Bitcoin (L-BTC) are verifiably 1-to-1 backed by Bitcoin. Liquid allows anyone to move Bitcoin to the sidechain through a peg-in using a Liquid full node. Peg-outs can be conducted through a Liquid Member.
Asset Issuance
The assets issued on Liquid are native to the sidechain. This means fast and private transactions that scale even during times of high traffic. Once exchanges have integrated with Liquid, listing and maintaining new Liquid assets becomes an easy task thanks to Liquid’s uncomplicated token issuance.
Open Network
To participate in the Liquid Network, all you need is a Liquid wallet or full node. Wallet users can freely send and receive all Liquid assets. Those with a full node can peg in bitcoin, issue new assets, and fully verify blocks on the sidechain.
For more information on the Liquid Network, visit Liquid.net.
Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at feedback@btse.com or on Twitter @BTSE_Official.
Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.
