Liquid Network

From MarketsWiki
Revision as of 03:57, 15 July 2021 by ThomThompson2 (talk | contribs)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

Liquid Network
Founded October 10, 2018
Headquarters San Francisco, California
Key People Samson Mow, chief strategy officer
Products Bitcoin payments solution
Twitter @Blockstream
LinkedIn Profile
Facebook Page
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]


The Liquid Network connects numerous cryptocurrency exchanges, brokers, and various other financial institutions. Trading platforms included in the network are 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 volumes of 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 them settle high volumes of transactions.[4]