Blockstream’s first Liquid network, the bitcoin sidechain, is live now to ensure that Blockstream’s members, which includes almost 23 of the world’s top-rated exchanges, are capable of undergoing numerous bitcoin transactions at an amazingly high speed. At the moment there are 23 members but in the future, more members are expected to join the Liquid network. Blockstream’s Chief Strategy Officer (CSO), Samson Mow responded to BlockPublisher and told if Blockstream will be including more members or not. He answered:
Yes, we will be expanding as the members as needed.
The company has mentioned the current members of the Blockstream’s liquid network. At the moment, the members include: Altonomy, Bitbank, Bitfinex, Bitmax, BitMEX, Zaif, Bitso, BTSE, Buull Exchange, Coinone, Crypto Garage, Atlantic Financial, GOPAX, Korbit, L2B Global, OKCoin, The Rock Trading, DGroup, SIX Digital Exchange, Unocoin, Xapo, XBTO, and BTCBOX.
The Liquid network launched after the struggle of about three years possesses several features. The notable features of Blockstream’s liquid network outlined by the company include Liquid Bitcoin ( L-BTC ), issued assets and confidential transaction.
L-BTC ensures that members are provided with a safe and secure way to transfer bitcoin among them in very less amount of time i.e about two minutes. L-BTC is two way pegged to bitcoin and therefore, can be exchanged against bitcoin, anytime.
With issued assets, the liquid network has abandoned the requisite of a wallet. Due to issued assets, the attributes of bitcoin, that include digital award points and tokenized fiat, are offered to traditional assets.
As the name suggests, the confidential transaction ensures that the transaction and information related to it is revealed to very limited users. The details of transactions are only visible to the transacting parties. Therefore, confidential transaction makes sure that privacy of the issued assets and L-BTC is maintained.
Blockstream explains that Liquid network is a federated sidechain that allows the exchanges to send and receive bitcoin to each other on the behalf of their customers. A user requesting a deposit address would be given an address like bitcoin address with an addition of CT at the beginning. The end user would be using the same address for requesting a withdrawal from the exchange.
Besides all the prospects brought by the Liquid network, Blockstream has highlighted the aspects lacking in the Liquid network as well. It claims that the Liquid network will not be as decentralized as bitcoin network. Although it will not be entirely controlled by a single party but will be operated through functionary servers owned by bitcoin exchanges.
As Blockstream’s Liquid network is launched recently, with time, more aspects of the sidechain will become visible and clear.