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Blockstream Launches NextGen Bitcoin Sidechain: Liquid Network

While bitcoin is the most used cryptocurrency in the whole world, it is undeniable that its functionality has been lacking in certain aspects since last year December, when transaction fees for operating with bitcoin skyrocketed to more than $50 per transaction; not only that, it was clear that bitcoin was not ready for normal users to buy goods and pay for services every day because transactions took days to be confirmed and executed even with this level of fees.
So, if it is not ready for normal, everyday users, least it could be prepared for enterprise uses, when security, confidentiality, anonymity and mostly reliability are needed traits to be taken in account. While a second layer protocol called lightning network has been proposed and designed, is in testing and used by few stores all around the internet. But the lightning network is still too green for enterprise users, and money can be really lost.
Blockstream, a company that has centralized and funding most of the bitcoin development in the last years, and also promoters of the lightning network, decided to create a solution for the slowness and unreliability of bitcoin transactions by creating a new, enterprise-based “federated” sidechain to transfer assets almost instantly between the startups involved in this project. Liquid Network in the result of all those efforts.
Liquid Network is the commercial definition of a “federated sidechain” that will let its users commerce in a new “bitcoin like” token called “L-BTC”, that will serve as a standup token for the real bitcoins in the real chain. It could be accounted as a mature lightning network for exchanges and other startups that require near instant bitcoin transactions. It is good for these applications. But some criticism has arrived from miners and actual bitcoiners stating that these innovations must be made inside the same chain, and not relying on peripherical chains.
People like Roger Ver has stated before that innovation outside of the blockchain tend to debilitate the hashpower of the network because it transports operations of the miners reach. Mining is the only source of income that secures the network, but if mining is not profitable enough miners will abandon the network, rendering it useless. Others claim that this new technology is a closed bank version of bitcoin, a clone of XRP. This to appeal to an exchange market. Liquid Network is live to test and you can download all the information on their website. The only thing is that after getting out the beta phase, promoters must pay an operational fee to Blockstream. Many exchanges are already signed into the test including  Bitfinex, OKCoin, BitMEX.

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