Liquidity Network {Harnessing The Power Of Centralization And Decentralization To Be The Ultimate Solution In Cryptoassets Based Transactions}

• The Liquidity Hub NO-CUST

• The Revive

The liquidity Hub NO-CUST

• Nocust is a word derived from “Non-Custodial”, it is a means of enabling an off-chain transactions whilst eliminating the possible costs associated with on-chain transaction. Another beauty to it is that, you have total control of your crypto-assets which gives the users sense of belongingness. Users have a private key to their wallets and the service of a custodian is null and obviously not needed as the payment are interconnected, so it allows the users to send payments across the hubs in a trustless manner.
  Nocust hub enable millions of users transact simultaneously without restraint, eliminating transaction delays and boosting transaction speed will enable mass adoption of the liquidity network technology.

The Revive

• The Revive is an integral part of the liquidity network. It is basically a constructive algorithm that enables different hubs to rebalance their payment channels off-chain.

What are the benefits of maintaining control of your private keys just as you would with decentralized services while the computing is handled by an efficient centralized server?

Decentralization is the key to establishing an autonomous transparent network for the purpose of maximizing user experience. One of the challenges faced by current blockchain users is the centralization of mining for digital currencies like Bitcoin, Ethereum etc. i.e there exist a central authority with large amount of mining power used to regulate the extent of users’ mining. This however goes contrary to the concept of decentralization and hence, it should be regarded as a non transparent transaction. But with the liquidity network being regulated under a centralized authority in like manner, it however ensure that the aspect of a user private key remains decentralized i.e user’s has retained control of their funds, and there’s no need for a custodian even when transacting on the liquidity network, hence, strengthening security of transaction and allayed fears.
However, the centralization of the computing helps to scale better unlike any other existing solutions by lessening congestion of the platform.

Off-Chain Transaction Settlements

Off-chain transactions can be separated into two main categories. The 2-party transactions are between 2 users, while N-party transactions are between more than 2 users:

• 2 party payment channels
• N-party payment hubs

The following are different types of 2-party channels:

Unidirectional
A unidirectional channel is between two parties; one of which deposits collateral of some sort (e.g. ether). The deposit is a security that encapsulates the maximum amount that will travel through the off-chain channel. Funds can only travel in one direction in a unilateral channel.

Bi-directional
A bidirectional channel is one between two parties that both deposit collateral. This channel allows funds to be sent in both directions. The risk with bidirectional off-chain transactions is that an illicit node on that channel (one of the two parties) can invalidate the previous transaction and steal fund from other party.

Linked payments
Linked payment channels are used in the case where two peers are not directly connected. Every member deposits some collateral in this network. With linked payments topography, the following considerations are taken into account: route finding, channel maintenance, transaction security, and congestion balancing.

2-party payment Hubs
A 2-party payment hub is an extension of the above types, which includes more than just two people participating in a direct transfer of funds.

N-Party Payment Hubs
N-party payment hubs remove much of the computational work that 2-party hubs require as pertains to rebalancing collateral. This makes transfers cheaper, faster, and allows more users to participate in the hubs. liquidity network Hub offers free offchain channel registration. Comparing to 2-party payment channels which requires complicated routing topology, liquidity network Hub offers simple routing. Payment hubs ensure funds are only transferred between users, and never held on a server. A server, however, is utilized to compute the transactions so that they are faster and cheaper for the hub as a whole. Again, while the server computes the transactions, the user holds the funds, so the funds of the users in the payment hub are not compromised. N-party payment hubs lower the barrier of entry that are necessary to join a hub, thereby creating more Liquidity.

How is liquidity network suited to allow true decentralization and efficient transfer of funds?