In this interview, I talk to Adam Back and Samson Mow Blockstream’s CEO &
Chief Strategy Officer. We discuss Blockstream’s Liquid Network, a
sidechain solution for faster and more confidential transactions aimed at
traders and exchanges.
A sidechain introduced by a company called Blockstream mainly intended for traders arbitraging between exchanges and exchanges rebalancing their liquidity. It is more centralized than onchain or lightning and essentially a multisignature between 44+ exchanges.
It is a federated sidechain with a 1 to 1 peg so does not dilute the Bitcoin supply where people can swap BTC for LBTC and swap out back to Bitcoin with some interesting tradeoffs. It has 1 minute block targets instead of 10 minutes, better privacy with CT, and other features like the ability to create and track digital assets like Omni.
Personally, I will likely never use liquid because I don't day trade so don't need to arbitrage quickly between exchanges and prefer lightning for more controlled and private 2nd layer