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Bitcoin [BTC] transfers will become a lot faster with Liquid Network, says Jimmy Song

Ajay Narayan

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Bitcoin [BTC] transfers will become a lot faster with Liquid Network, says Jimmy Song
Source: Unsplash

Jimmy Song, a Bitcoin developer spoke about the invention of the Liquid Network, whether it was centralized and if it could potentially harm Bitcoin’s reputation, during an interview with Crypto Insider.

Song opined that the Liquid network was a “good first step” towards sidechains, a mechanism that allows digital assets from one blockchain to be securely used in another blockchain. These assets can then be moved back to the original blockchain when necessary. He stated that Liquid Network adopted the Federated Trust Model where a “super majority” of participants were required to sign off before the transactions are successful. Jimmy further added:

“If I remember correctly, they have 23 and you need a super majority, or 1 + ⅔ or something like that… So Sixteen or Seventeen out of those twenty-three need to agree before any transactions go through but generally if it’s signed by people then it can go through fairly quickly because it’s a trusted, sort of, closed wall garden”

According to Jimmy, it was a good idea to provide liquidity between cryptocurrency exchanges. He gave an example of Korea and how there was a significant premium on cryptocurrencies for lots of time, this was because there was no liquidity. Most of the liquidity was not there due to the fact that fiat currencies were not being able to flow out. He added:

“So there are capital controls in Korea that make it very difficult, but when you have at least a bitcoin liquidity you can settle a little bit faster”

He added that individuals were constantly trying to arbitrage things which resulted in people bringing a lot of money into Hong Kong in order to bring more Bitcoins into Korea. Jimmy further opined:



“This mitigates that a lot and makes a lot of the bitcoin transfers a lot faster. Not even 30 minutes or something like that it’s almost instant with the sidechain”

Jimmy spoke about the cryptocurrency exchanges and how most of the Bitcoin network activities which were on-chain. These activities were from the people who wanted to arbitrage and most of this volume would be taken into the Liquid Network. As soon as it is verified that the other address is a participant of the Liquid Network, transfers will become more efficient and instant. He stated:

“Eventually, I imagine this will become sort of like a second layer network that’s more commercial and I think that’s a good thing. You know I like competition, I like innovation, I like when new things are tried out so it’s something that I’ve been thinking about for a while”

Jimmy further stated that there was a reason for calling it ‘Liquid’ as it provided liquidity to everybody and could also “even out” the prices. Furthermore, any participant on the network who did not have the same price as the other participants would reflect on the fiat currency of that country.





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Ajay Narayan is a full-time journalist at AMBCrypto. He has majored in Economics, Political Science and Sociology. His interests are inclined towards writing and investing in cryptocurrencies.

Bitcoin

Craig Wright withdraws evidence, US Presidential Candidate emphasizes on crypto-regulation and more

Priya

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Craig Wright withdraws evidence, US Presidential Candidate emphasizes on crypto-regulation and more
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Daily Crypto News – April 18

Craig Wright withdraws email evidence: The self-proclaimed Satoshi Nakamoto withdrew the email evidence submitted to the court with regard to Kleiman case. This news comes days after some members in the community suggested that the email evidence was “fake”. Notably, the evidence was withdrawn as Wright could not verify the timeframe of when the emails were exchanged.

To know more, click here!

US 2020 Presidential Candidate urges the need for cryptocurrency regulation: Andrew Yang, the United States 2020 Democratic Presidential candidate, released a new policy, which emphasized on the need for regulating the digital asset place, and also listed the actions he would do for the cryptocurrency market as the President. On his official Twitter handle, Yang stated that, “Investment in cryptocurrencies and digital assets has far outpaced our regulatory frameworks”.

To read more, click here!

Bitcoin SV network witnesses yet another blockchain reorganization: It was reported that Bitcoin SV’s network witnessed another blockchain reorganization on a 128 MB block, with over six blocks orphaned [#578640–578645]. Moreover, Bitcoin SV’s network was unresponsive for over an hour.

To read more, click here!



Craig Wright takes on evidence and law: In a recent blog post, Wright speaks about proving to be the creator of Bitcoin, Satoshi Nakamoto. He stated that, “the important thing to understand is: law is law. Code (programs and algorithms) in any form is merely evidence… You see, ownership of the key is not proof of anything other than the possession of a key”

To read more, click here!





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