Distributed database that is used to maintain a continuously growing list of records, called blocks
Commercial application, based on the sidechain technology Liquid from Blockstream will be launched in the first quarter of 2018. This is reported by BraveNewCoin.
Sidechain Liquid was working in the test mode since the end of the 2015. It was launched in beta mode in May 2017. Technology is designed for bitcoin-exchanges, processing services and traders by reducing the time of transactions between the accounts.
First decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen
Despite the fact that Liquid is a private blockchain, it is built over bitcoin's blockchain and allows to reduce the time of transaction between exchanges to few seconds.
The Liquid network consists of a federation of operators, or functionaries. These network operators mechanically execute defined operations if specific conditions are met. Functionaries have the power to control the transfer of assets between blockchains and to enforce the consensus rules of the sidechain.
As Ben Gorlick, Blockstream Director of Product mentioned, Liquid version 1.0 will support up to 15 functionaries. Each will be placed in different exchanges. Additionally, few functionaries can be turned off without any harm for a system. And even if all of them "falls", there are a lot of ways to guarantee the security of client's funds.
Blockstream crew also mention that Liquid launch will depend on SegWit protocol activation. Possible side-effect is an indirect decrease in Bitcoin’s existing traffic
Nevertheless, as the developers insist, the technology will facilitate the processes of trading, arbitrage and liquidity provision.
As Gorlick assures, Liquid will help with scaling of the network by reducing the pressure on the bitcoin's blockchain.
Thus, the main innovative solution is the wallet that users can use to safely store bitcoins outside the exchanges. In this case, they have the opportunity to quickly move coins, when there is such a need.
Over the past few months Liquid has been already tested by several well-known exchanges, including Bitfinex, BTCC, Kraken, Unocoin and Xapo.