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Author: Admin | 2025-04-28
Launched in 2018, the Liquid Network is a sidechain solution designed to provide faster, more secure, and confidential Bitcoin transactions between individual and institutions such as exchanges, brokers, and market makers. At the time of writing, the network’s native token Liquid Bitcoin (L-BTC) is pegged to 3378 BTC (around $183 million).What Is the Liquid Network?The Liquid Network is a Layer 2 sidechain settlement network built on the Elements platform to improve the efficiency of crypto trading. Unlike in Bitcoin, blocks on the Liquid Network sidechain are not mined with a proof of work algorithm. Instead, each block is signed by specialized hardware units (known as “functionaries”) selected through a round-robin system. These functionaries serve to sign transactions, generate new blocks, and secure the BTC pegged in to the network.With the widespread adoption of Bitcoin (BTC) since its launch by Satoshi Nakamoto in 2009, scalability has remained a key concern. One of the areas in which Bitcoin still lags significantly behind is transaction speeds. While traditional payment solutions such as Visa and Mastercard are capable of performing up to 5000 transactions per second (TPS), Bitcoin can only process up to seven.Slower transaction speeds pose significant problems to both individual and institutional investors. As Bitcoin transactions can take up to 60 minutes or more to settle, there are significant inefficiencies and risks when it comes to arbitrage. Traders can often be unsure of their margins until validation is completed on the blockchain. The public nature of the Bitcoin network also puts large
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