Liquid of block stream, the solution for the Bitcoin scale?


Liquid block streams solution approach to the scaling problem of Bitcoin. With Sidechains transactions will in future be dealt with more effectively. Especially for institutions this is useful, however, brings a disadvantage.

Bitcoin is supposed to be Liquid by the block stream in the future more effective. The concept of the Sidechain is likely to already from projects such as the Lisk to be known. Before that time, have projects such as Rootstock with Sidechains in Bitcoin-Ecosystem experiments. A swap “in addition to” of the main Blockchain, the transactions can be confirmed.

Bitcoin transactions in two minutes

This should go hand-in-hand with considerably greater efficiency: The second level of promises that within two minutes of transactions to confirm. Furthermore, it should be possible to make private transactions on the Sidechain to expire, of which, in the end, only know the receiver and the transmitter. Finally, in this way, extensions to the functionality of Bitcoin without a Soft Fork or Hard Fork.

The concept of Liquid is mainly used for “large Player” as Exchanges useful, and will have to make many transactions in a short period of time. By outsourcing to Sidechains to be ultimately relieved, the individual blocks that need not be Packed so full of (). The concept is called, therefore, “federated Sidechain”. The fact that miners need to run a smaller number of operations, faster confirmations and lower transaction fees.

Liquid Sidechains are reminiscent of the Bitcoin Lightning Network

The concept is reminiscent of the Lightning Network, wherein the universal is created. In addition, we are working here with the opening of transaction channels. Both Lightning as well as Liquid should do the scaling problems of Bitcoin.

Liquid is, however, a relatively Central issue. The Governance is done by institutions, such as an Exchange. It’s already in the name of the federated Sidechains. By the solution of the block stream has a greater concentration of Power arises ultimately. For Bitcoin exchanges this is quite reasonable – you need a certain amount of predictability and reliability, if you want to move large amounts of Bitcoin.

Currently, Liquid block-stream 23 of the biggest names from the institutional sector of the industry. In order to achieve a large dispersion, selected according to geographical criteria. The companies participating in the Liquid Network are:

  • Altonomy
  • Atlantic Financial
  • Bitbank
  • Bitfinex
  • Bitmax
  • BitMEX
  • Bitso
  • BTSE
  • Buull Exchange
  • DGroup
  • Coinone
  • Crypto Garage
  • Korbit
  • L2B Global
  • OKCoin
  • The Rock Trading
  • SIX Digital Exchange
  • Unocoin
  • Xapo
  • XBTO
  • Zaif

Consensus without Proof of Work

At the beginning of the block stream to provide a neutral and common Version of the Liquid Network, but with time, certain improvements can be suggested. A party does not agree, can you decide the Update is not run and try to move other participants to find a consensus. The method shall work without Proof of Work.

Participants will in future have to pay a monthly subscription fee. The Liquid Network is to be able to work with other crypto-currencies.



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