Three years in the making, bitcoin's first sidechain "Liquid" is now live.
Launched by San Francisco startup Blockstream, Liquid is arguably the most advanced implementation of a technology called sidechains that's long been a holy grail for bitcoin coders.
Built off of the live blockchain, Liquid will now be used to carry large volumes of transactions at a higher speed for several of bitcoin's largest companies.
Blockstream first unveiled the idea in 2015, then the sidechain was launched in beta - being put to the test on bitcoin's main network - last year.
Initial users included 23 bitcoin companies, including exchanges, brokers and other institutions, who will help to manage the sidechain, as well as use Liquid to send transactions.
"This will bolster the bitcoin ecosystem because you can trade more securely and rapidly," Blockstream CSO Samson Mow said in interview.
An exchange converts its bitcoin into "LBTC" - the liquid bitcoin token - which is pegged to actual bitcoin.
"Liquid's instant settlements will allow our traders to achieve faster bitcoin deposits and withdrawals, more efficient arbitrage, and even better pricing though tighter spreads."
Instead of building a sidechain that allows users to swap bitcoins for sidechain coins with a trusted third party, Blockstream built what's called a "Federated sidechain."
Plus, the company's bitcoin wallet GreenAddress already supports Liquid.
Liquid Goes Live: Blockstream's First Bitcoin Sidechain Has Finally Arrived
Published on Oct 10, 2018
by Coindesk | Published on Coinage
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