As is well known and accepted, Bitcoin allows for fast and secure value transfers. However, in recent years, new crypto currencies have been created that have higher transaction speeds than Bitcoin. The mother of crypto-currencies can’t be left behind. There are ways to keep it as the standard for blockchain transfers by optimizing your transaction time. To achieve this, different platforms have focused their efforts on streamlining its use and operation. One of them is the Liquid network of the Blockstream team, created by Bitcoin developers.
Liquid is a sidechain developed from the Bitcoin blockchain. A sidechain is an independent block chain connected and supported by a main block chain, in this case the Bitcoin blockchain. When you make a transaction at Liquid, our bitcoins are converted into an equivalent amount of L-BTC (Liquid Bitcoin) which, once converted, is sent to the receiving address, faster. Once a transaction has been made, the L-BTC can be converted into BTC at any time.
The speed of transactions is due to the fact that at Liquid, unlike the Bitcoin blockchain, there is no proof of work and no miners involved in the process. In Liquid the transaction approval process is done directly through nodes managed by a group (confederation) of exchanges that belong to the network.
Finally, the Liquid network was created to make bitcoin circulate faster and more securely between the exchanges. By all sharing the same network, transactions between exchanges are faster and different trading opportunities can be taken. This could lead to greater price stability and healthier, more informed trading.
Liquid is faster transaction speed. When making a regular bitcoin transaction, we wait on average 10 minutes for the transaction to have a confirmation. Liquid produces its own blocks and makes a bitcoin trade within 1 to 2 minutes, 5 times faster.
Liquid offers other benefits in addition to increased speed. One of them is that in the future the network will allow other cryptocurrencies to be integrated into the network, consequently allowing users to use the platform to exchange other assets besides bitcoin. Likewise, although traditional transactions at Liquid are public, Liquid offers the possibility of making private transactions in which only the parties involved know the amounts and the sender and receiver addresses. Liquid is the highway that Bitcoin needed, providing greater transaction speed to an asset that was running low. Bitso is now one of the nodes that make up the exchange confederation of the Liquid network, so we’ll be contributing to the security and speed of your transactions.