The Liquid Network is an open-source, inter-exchange settlements sidechain that’s built using the Bitcoin codebase.
It’s centrally governed by participating exchanges and institutions and allows for quick and private transactions, and for the issuance of digital assets such as tokenized securities.
It has a native currency (LBTC), which is pegged one-to-one with BTC, and for every LBTC in the network it is verifiably backed one-to-one by authentic BTC.
What is The Liquid Network?
Launched in September 2018, the Liquid Network is a sidechain built on Bitcoin with the aim of providing fast, secure, and confidential transactions for exchanges, brokers, market makers, and financial institutions.
It was developed by Blockstream, and is run by partners, such as Bitfinex, BitMEX, Coinone, OKCoin, Huobi, SIX Swiss Exchange, and wallet manufacturer Ledger, who all run full nodes and partake in the governance and validate transactions and block production on the network.
Being a separate chain, Liquid produces its own blocks and hosts its own crypto assets, and the native token, Liquid-Bitcoin (LBTC) is pegged to BTC and every LBTC is backed by actual Bitcoin.
From launching in September 2018 until December 2019 there was only 96 LBTC in circulation. However, after December 2019 the amount of LBTC spiked exponentially and there are now 2160 LBTC in the network all backed by BTC. Read More