The One Saving Grace we were waiting for - Liquidity Network!
How Liquidity Network's Merge Approach will change the blockchain game:
What is the Liquidity Network?
Liquidity Network is a scalable and easy-to-use yet secure private network on top of the Etheruem blockchain that serves a purpose to bring a viable option when sending cryptocurrencies. The network gets an edge over the other technologies as it supports millions of users and is very affordable.
This off-chain architecture was fully launched on 14th June, 2018 entering the domain and standing above its rivals like Marketplace and NYSE.
Off-chain transactions refer to those transactions occurring on a cryptocurrency network which move the value outside of the blockchain.
How does the system work? The Merge
In essence, the network employs a centralized approach to increase the speed of the transactions whilst employing a decentralized approach to retain the security of the blockchain.
The Network centralizes the computing power by central hubs called The Liquidity Hub NO-CUST (which is derived from the word "Non-custodial") within which users in the network can transfer their valuables - cryptocurencies - among themselves in the intranet. Consequently, this makes the transactions instant and at a low cost.
The Network ensures that each user has access to every other user in the network within a transaction. The Network, at the same time, makes sure that the asset is secure thus reducing risk. It combines the purpose of a blockchain but where the assets are transfered out of the blockchain.
The network also has another key component called REVIVE. This is an algorithm that ensures a balance in all the hubs and since it is off-chain, it makes it easily scalable.
The Transaction Cycle:
Transactions could be between 2-party channels or N number-party payment channels.
2-party payment channels:
- One directional - The asset travels in one direction where one party sends a collateral to the receiver.
- Two-directional - The asset moves between two parties in both directions. Its limitation comes about when one party invalidates the transaction and steals the funds.
- 2-party payment Hubs - Involves two parties directly sending funds to each other.
- Linked payments - Where the two parties are not directly connected in the network.
N-party payment channels:
Occurs between multiple parties. This reduces the amount of computational power needed as compared to 2-party channels making transfers faster, more affordable and allows for more users to the hub.
The private keys brings control in each hub where the owners(or those in possession) of the private keys are in control. Anyone can start a payment hub and host millions of users!
The Liquidity Network Wallet:
The wallet application runs on a variety of devices; both desktops and mobile phones. The app is available on Google Play Store for Android smartphones and Apple App Store for iOS users. There is also an experimental web app in its Beta stages that runs on all browsers. They call it the Billfold Wallet.
Liquidity Network's Edge and Application:
One security concern of present airdrops are the 'custodian mechanism.' The custodian holds your wallet's funds and private keys. The moment a transaction is to be made, the custodian sends you the private key which can be illegally accessed by unauthorized people through phishing and eavesdropping. This method is inefficient and Liquidity Network fixes this by removing the custodians and transaction fee and launches multiple drops to millions of people in turn reducing unnecessary costs.
In my opinion, I acknowledge the benefits of a scaled-up, more affordable, easy-to-use and faster comparison to today's blockchain congestion. All this hype got me at its user-friendly and attractiveness of the wallet's application. I've used the system myself and I could highly recommend this to anyone, anytime.
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Liquidity Network Contacts: